Yesterday's big moves were retraced....>

BOND SUMMARY: Yesterday's big moves were retraced a little towards the end of

the US session and the beginning of the Asian session. However, headlines this

morning have focused once again on the coronavirus. The number of cases in Italy

has risen by 41 to 270. However, perhaps more concerning is the news that a

flight attendant who flew between South Korea and both LA and Tel Aviv had

tested positive for the virus.

- Bonds have been moving higher once again since the European open with Bunds

surpassing yday's highs with yields at their lowest levels since Oct. Treasuries

have moved higher and are approaching yday's highs while gilt futures are some

way of their highs of yesterday. With the European outbreak in Italy, BTPs have

led peripheral spreads wider. 10y spreads to Bunds are now back above 150bp.

- TY1 futures are up 0-7 today at 132-28 with 10y UST yields down -1.6bp at

1.355% and 2y yields down -0.7bp at 1.244%. Bund futures are up 0.35 today at

175.93 with 10y Bund yields down -2.7bp at -0.510% and Schatz yields down -1.4bp

at -0.694%. Gilt futures are up 0.10 today at 135.01 with 10y yields down -0.6bp

at 0.533% and 2y yields down -0.4bp at 0.397%.