Wuhan coronavirus continues to drive...>

US TSY FLOWS: Wuhan coronavirus continues to drive strong safe-haven/risk-off

bid for rates, despite quarantines and travel bans virus continues to spread.

Tsys very well bid by the close on heavy volume (TYH >2.2M), near top end of

narrow session range after gap-bid early overnight. 10YY 1.6046%, -.0793; 30YY

2.0574%, -.0750. 2s5s yld curve re-inverts first time since early December.

Global equities tumble, eminis -50.0 late Monday; gold +10.30.

- Initial gap bid early overnight, decent two-way, some profit taking through

London cross-over, Tsys resumed climb well ahead the NY open, holding to a

narrow range as ylds bled lower throughout the session. 

- Limited data, Fed in blackout ahead Wed's FOMC annc, mkts absorbed staggered

13- and 26W bill, 2- and 5Y note supply. US Tsy $41B 5Y Note (912828Z52) tail:

awarded 1.448% rate vs. 1.437% WI (previous $41B 5Y awarded 1.756%); 2.33

bid/cover vs. 2.49 prior; in-line $40B 2Y Note auction (912828Z60) awarded a

1.440% rate (1.653% prior) vs. 1.440% WI, bid/cover 2.65 vs. 2.30 previous. The

2-Yr yield is down 5.6bps at 1.4388%, 5-Yr is down 7.2bps at 1.4316%, 10-Yr is

down 8.5bps at 1.5994%, and 30-Yr is down 8bps at 2.0527%.