What to Watch: China Stock Rout on Lockdown Fears; Fed Blackout

FI markets trading firmer, 30Y bond futures back to April 14 level (USM2 +1-08 at 141-11; 30YY slips to 2.8739 low). Spread of covid in China, concern over Beijing lockdown - zero covid stance appears to be contributing to risk off, China stock rout.

• No Fed speakers with Fed in Blackout through May 5, day after next FOMC policy annc.
• Data on tap (prior, est):
  • Apr-25 0830 Chicago Fed Nat Activity Index (0.51, 0.45) at 0830ET
  • Apr-25 1000 Revisions: Retail Sales, Inventories at 1000ET
  • Apr-25 1030 Dallas Fed Manf. Activity (8.7, 4.8) at 1030ET
• Treasury supply:
  • US Tsy $51B 13W, $45B 26W bill auctions at 1130ET
  • Note auctions kicks off Tuesday with $48B 2Y
    
• Stocks weaker, SPX eminis back to mid-March levels (ESM2 at 4237.5, -29.75). Earnings resume: Coca-Cola (KO) and Otis (OTIS) both beating ests this morning. After the close: Whirlpool (WHR), Cadence (CDNS), SBA Comm (SBAC) to name a few.
  
• Geopol risk: Market remains alert for developments on Russia war in Ukraine, knock-on effect to markets. Russia Announces Mariupol Ceasefire: Wires and social media reporting that the Russian Ministry of Defence has announced that a ceasefire will be implemented around the Azovstal steelworks in the besieged city of Mariupol to allow for a humanitarian corridor to be created.