Too early for risk appetite to.........>

US TSY FLOWS: Too early for risk appetite to return with such gusto? Perhaps.

Whether the multi-session risk-off run tied to fears of the novel coronavirus

spd was overdone or "too far, too fast" remains to be seen. But that was the

theme for the day as cooler heads turned focus back to markets, politics (Iowa

caucus debacle; Trump SOTU tonight) and data (ADP wed, NFP Fri). US factory

orders rose 1.8% in Dec, largest m/m % change since Apr'18 underscored moves.

- S&Ps surged over 55.0, Gold fell over 28.0 around midday (but bounced slightly

late), and 30YY climbed to 2.0898 high after slipping below 2.0 to 1.9936%

overnight.

- Relative calm spurred on issuers: $6B Wells Fargo 2-part matched Jan's MS for

largest issuance of year so far. Decent two-way flow in 2s, 3s and 5s leaning

toward better paying, particularly in 2s around 1.470-1.468%, earlier Eurodlr

Red pack block swap-tied as well as corporate issuance-tied hedging in 3s-5s.

Tsy futures starting to see pick-up in March/June futures roll adding to

volumes. The 2-Yr yield is up 6.2bps at 1.415%, 5-Yr is up 8bps at 1.4271%,

10-Yr is up 7.7bps at 1.6043%, and 30-Yr is up 7.2bps at 2.0789%.