A Light Bid For Risk

The PBoC's latest round of liquidity injections, with recent instances alleviating last week's tightening pressure in short dated Chinese money market rates, and a message from China's chief diplomat, Yang Jiechi, pointing to the potential for a more constructive Sino-U.S. relationship, albeit with the usual caveats surrounding well defined flash points, has seemingly supported broader risk appetite over the last hour or so. E-minis have ticked higher, with very modest cheapening seen in U.S. Tsys (although that space is still rangebound). The USD sits at the bottom of the G10 pile, with the broader DXY struggling to break through the downtrend line drawn of the March '20 highs that we flagged yesterday.