A Miss For Chinese GDP Halts Early Downside Momentum

A lack of fresh macro headline flow and the weaker than expected Chinese GDP reading has limited the downside impetus that was witnessed in early Asia-Pac trade (which was largely driven by the aforementioned uptick in e-minis, as they unwound some of Friday's late option expiry related losses). Contract last -0-04 at 138-30, while cash Tsys sit 0.6-1.5bp cheaper across the curve.

• The impetus from Tsys/e-minis/the Nikkei 225 weighed on JGB futures in early dealing this week, with the contract shedding its fairly modest overnight gains and more, last -7 ticks vs. Tokyo settlement levels. The swaps curve twist flattened, with receiving seen in 40s, which was an outlier, while cash JGB yields sit either side of unchanged.
• Aussie bonds have seen the impetus from the U.S. Tsy space spill over, resulting in some relatively light pressure, with one eye also on a flurry of A$ semi and corporate deals. YM -0.5, XM -3.0, with the latter struggling for meaningful momentum through its SYCOM lows, for now. The prospect of relatively imminent RBA easing continues to cushion AU 10s vs. their U.S. Tsy counterpart, allowing the AU/U.S. 10-Year yield spread to settle just below 0bp early this week.