The early risk averse feel to Asia-Pac......>

US TSYS: The early risk averse feel to Asia-Pac trade built in the wake of the

delivery of the annual work report out of China, which revealed that China will

not have a GDP growth tgt for '20, while the country re-affirmed its anti-Taiwan

independence mantra & put legislation into motion re: tighter security

surrounding Hong Kong, as it gave itself greater oversight within the city

state. Hong Kong protestors are set to gather later today. Contacts also pointed

to the shedding of risk exposure/hedging demand ahead of the elongated U.S.

weekend. The resulting price action pushed T-Notes higher, last +0-06 on the day

at 139-08+, just off highs, with the curve bull flattening, as 20s outperform.

Volumes in T-Notes are very healthy for this time of day, well over the recent

average, sitting at ~120K ahead of European hours.

- As a reminder, Thursday saw Fed Vice Chair Clarida note that "YCC is a

"natural complement" to some other tools the Federal Reserve might use to manage

long-term interest rates."

- The local docket is non-existent ahead of the elongated weekend, with focus on

the Fed's weekly Tsy purchase size announcement later today.