Worry re: the continued spread of China's......>

JGBS: Worry re: the continued spread of China's Coronavirus has been the

dominating force in Asia-Pac hours, with a light sprinkling of geopolitical

tension thrown in for good measure. This leaves JGB futures 25 ticks up vs.

settlement moving towards the close, as the contract builds on the gains seen in

the final overnight session of last week. Contract is 12 ticks off the early

highs, in line with broader risk sentiment (as well as JPY crosses and local

equity markets). The cash curve has bull flattened. Various strategists have

pointed to the tightening in the LCH/JSCC 30-Year swap spread in recent

sessions, which would indicate receiver flows from abroad, also evident today.

- BBG suggested that PM Abe's Abe's "nomination to replace Yutaka Harada on the

Bank of Japan policy board could come as early as Tuesday. The government will

submit a list of personnel appointments to parliament on Tuesday, according to

people familiar with the matter."

- Also worth flagging that PM Abe's approval rating ticked lower in the latest

monthly Nikkei poll.

- 40-Year JGB supply and services PPI headline the local docket on Monday.