A Touch Firmer

The impetus from Wednesday's NY dealing has spilled over into early Asia-Pac trade, with questions surrounding a debt ceiling resolution and mixed rhetoric out of North Korea providing the major headlines thus far. T-Notes last +0-08 at 131-23, just off the early Asia-Pac highs, with the contract holding to a narrow 0-03 range thus far. Cash Tsy trade sees the major benchmarks run little changed to 1.0bp richer at typing. The previously outlined selling of EDV1 Has provided the highlight on the flow front.

• Chinese PMI data will headline in Asia-Pac hours. The official manufacturing reading is expected to register a neutral 50.0 print, per the BBG survey (range: 47.0-50.7), while the non-manufacturing print is expected to register a second straight contractionary reading at 49.8 (which is the BBG survey median, range: 48.0-54.0). The Caixin manufacturing PMI will also hit, with the BBG survey median looking for a reading of 49.5. The headwinds that the Chinese economy is facing are well defined (regional COVID lockdowns, supply chain strains, slowing credit impulse), with power usage constraints the latest issue to provide difficulties for the economy.