T-Notes held a 0-05 range overnight, last...>

US TSYS: T-Notes held a 0-05 range overnight, last -0-02+ at 130-2+, curve twist

steepening. Focus on the ever-spreading Coronavirus featured heavily in holiday

thinned Asia-Pac trade, with the first case of the virus declared in Germany.

Elsewhere, the latest round of leaks from John Bolton's book crossed via the

NYT, suggesting that Bolton was concerned that President Trump carried out

favours for autocratic leaders, namely Xi & Erdogan.

- Asia saw risk reversals blocked, adding to the recent theme in the timezone.

FVH0 119.25/50 puts seemingly bought vs. 120.00/120.25 calls, with a slight

overweighting of the puts & the delta hedged. We also saw a FV/TY steepener

blocked. Worth recapping that Monday saw bulls fail to mount a sustained

challenge of 131-00 in TYH0, (yields bottomed out at ~1.60%). Some highlighted

large short positioning in various TY 131.00 calls as a source of resistance.

- Eurodollar futures sit -0.5 to -1.0 through reds.

- Flash durables & consumer conf. headline the local docket on Tues. 2-Year FRN

& straight 7-Year supply also slated after the recent richening resulted in less

than stellar 2- & 5-Year supply Monday, with 5s particularly suffering.