T-Notes drew support from regional worry....>

US TSYS: T-Notes drew support from regional worry surrounding the Coronavirus in

Asia-Pac hours, which has been compounded by the state of quarantine surrounding

Wuhan, China.

- A firmer JPY & particularly heavy session for Chinese equities ahead of the

Lunar New Year allowed the bid to build throughout the session, eyed. Contract

+0-05+ at 129-23 as we type, 0-01 tick off recent highs.

- Yields 1.9-2.5bp lower across curve, light bull flattening in play.

- A couple of block trades came to the fore during Asia trade. It looked like

10.0K of the TYJ0 128.00/131.00 risk reversals were dealt on block, buying the

puts to sell calls. There was also a package blocked, which saw 4.0K of the TYH0

129.50 calls, 6.0K of the TYH0 130.00 calls and 10.0K of the TYH0 130.50 calls

trade, potentially buying the two lower strikes to sell the highest, although

not 100% clear.

- Eurodollar futures sit 0.5-2.5 ticks higher through the reds.

- Weekly jobless claims, Kansas City Fed M'fing & leading index data are all due

Thursday. We will also see the latest round of 10-Year TIPS issuance.