Back The Other Way

U.S. Tsys trade back the other way and now sit 1-2bp richer across the curve in cash trade, with intermediates lagging on the rally after leading the early downtick. TYZ2 has registered a fresh session high on the move but hasn’t got close to challenging Tuesday’s peak as of yet.

• There hasn’t been an overt headline trigger crossing the broader wires to generate such a move, although an article from the Chinese press is doing the rounds, which sees analysts flagging the potential for another cut in the Chinese 5-Year LPR fixing before year-end (in what would be another counter-cyclical policy move to support the property market). This may have provided some incremental support.
• Elsewhere, there has been confirmation of earlier reports that G7 leaders will convene in Bali (the site of the ongoing G20 meeting) to discuss the Russia-Poland missile situation.