A Little Cheaper On Thursday, China PMIs Eyed In Asia

TYZ2 operates in line with late NY levels shortly after the re-open, after finishing around the mid-point of Thursday’s range.

• Tsys were 3-8bp cheaper on Thursday, with the 5- to 7-Year zone of the curve leading the weakness.
• Firmer than expected regional CPI data out of Germany helped extend the modest Asia weakness that was witnessed in Tsys. Elsewhere, UK PM Truss stuck to her fiscal plan, which also applied some pressure during early London trade.
• That was before a heavy day for equities allowed the space to move away from worst levels during NY dealing.
• Fedspeak had no tangible impact on the space.
• An FV block buy was noted (+11.8K) and helped the general move away from worst levels during the latter rounds of the NY morning.
• Looking ahead, official PMIs and the Caixin m’fing PMI out of China headline the Asia-Pac docket, while NY hours will see PCE readings, the latest MNI Chicago PMI print and the final UoM survey for Sep. Fedspeak will consist of addresses from Brainard, Bowman, Williams & Barkin.