Treasuries have faded since.........>

US TSYS SUMMARY: Treasuries have faded since posting sharp gains early in

Asia-Pac trading on China coronavirus contagion fears.

- March TYs off 6.5 ticks from the high set at 0930ET as concerns hit fever

pitch over the virus spreading across China and Asia. Last up 7.5/32 at 129-09.

- The 2-Yr Tsy yield is down 1.2bps at 1.5468%, 5-Yr is down 1.7bps at 1.6029%,

10-Yr is down 1.6bps at 1.8057%, and 30-Yr is down 1.6bps at 2.2649%.

- Trump speech at Davos largely non-event, once again criticised Fed for raising

rates "too fast" and lowering them "too slowly"; said most of China tariffs will

remain in place during Phase 2 negotiations (not news).

- Of more interest from the Davos sidelines was Treas Sec. Mnuchin telling WSJ

the U.S. is looking at $1trn deficits for a couple more years; reiterated

previous reports that the next budget would include a middle class tax cut.

- No key U.S. data today. Speaker wise, Davos sees Mnuchin on a panel at 0830ET;

NEC Director Kudlow at 1115ET.