Virus pandemic fear pushes Tsy ylds....>

US TSY FLOWS: Virus pandemic fear pushes Tsy ylds to new lows (10YY 0.5284% late

vs. 0.3137% overnight low; 30YY 0.9784% late vs. 0.6987% overnight low) as

equities hit low limit breakers twice early Monday.

- Multiple circuit breakers also triggered in Tsy futures overnight w/WNM well

past top breaker of 237-06: no limit; USM did tap top limit of 191-22 but has

receded. Yld curves bull flattened but are off overnight lows (huge 53.0bp range

in 3M10Y: -12.629, 16.015 (L: -29.46 / H: 24.123).

- A lot of vol for short end swap spds on day: reversed sharply wider levels to

tighter by midday, a huge turn-around in short period of time as Tsys pared

gains. Spds bounce again late as Tsys looked to trade higher again. Earlier,

intermediates to long end extended move wider. Decent two-way flow w/better

paying in 2s and 5s last hour, payer in 10s at 0.54625%, 2s5s10s receiver fly.

- Another surge in Eurodollar futures as mkt priced in more rate cuts from FOMC

(leaning toward another 75bps at the March 17-18 FOMC, or even a second

intermeeting cut in as many weeks if equities continue to crater.