With one eye on coronavirus updates,...>

BOND SUMMARY: With one eye on coronavirus updates, participants scrutinised the

latest monetary policy decision from the RBNZ, whose rhetoric proved hawkish at

the margin. Core FI have lost some ground. T-Notes last trade -0-06 at 130-26.

Yields sit 0.8-1.3bp higher across the curve, with some marginal steepening

creeping in. Eurodollars unch. to -3.0 ticks through the reds. U.S. NSA O'Brien

drew some attention as he pointed to potential hold ups in Chinese purchases of

U.S. ag products due to coronavirus outbreak.

- JGB futures have sold off sharply, last trade -16 ticks vs. settlement at

152.64. Cash yields sit higher across the curve. This occurs despite reports of

more coronavirus cases being confirmed aboard a cruiser docked in Japan. Machine

tool orders and 10-Year JGBi supply headline today's local docket.

- Aussie bond futures have extended losses on the back of developments across

the ditch. The RBNZ left the OCR unchanged, as expected, but otherwise sounded

pretty upbeat. YM -3.5 & XM -4.0; yield curve has bear steepened. Bills trade

1-3 ticks lower through the reds. RBA's Heath spoke earlier today, highlighting

coronavirus as a "fluid" economic risk.