Treasuries have taken a breather....>

US TSYS SUMMARY: Treasuries have taken a breather since a flurry of activity

overnight and early in European trading, with early gains on coronavirus

contagion (esp in SKorea) being tested on above-expected European PMI.

- While the PMI data had little impact in the end (flattered to the upside by

suppliers' delivery times slowing markedly), Tsys have come off the highs amid

equities stabilizing (solid Deere and Co earnings probably helping).

- Mar 10-Yr futures (TY) up 7/32 at 131-21 (L: 131-14 / H: 131-27.5). 2-Yr yield

is down 1bps at 1.379%, 5-Yr is down 1.8bps at 1.3454%, 10-Yr is down 2.5bps at

1.4898%, and 30-Yr is down 4bps at 1.9209%.

- 30-Yr rally means cycle low at 1.9039% (Aug 2019) suddenly in sight.

- Heavy volumes (TY ~ 750k) tied in part to rolls (TYs catching up, 14% done).

- As with Europe, U.S. Feb flash Markit PMI in focus, 0945ET.

- Jan existing home sales shortly thereafter at 1000ET.

- Lots of Fedspeak: Dallas' Kaplan at 0935ET, BoG Brainard and Atlanta's Bostic

on a panel at 1015ET; then VC Clarida and Cleveland's Mester on panel at 1330ET.