Tsys have pared their earlier bid on the release of Chinese PMI data for June, which saw a return to expansionary territory for the 2 major headline metrics. The m’fing PMI provided a slight miss (50.2 vs. BBG median 50.5) while the non-m’fing PMI came in well above expectations (54.7 vs BBG median 50.5).
- Cash Tsys run flat to 0.5bp cheaper across the curve with the belly leading the way lower, reversing the modest richening observed before the release of the data. TYU2 is unchanged at 117-16+, sitting 0-05 below best levels.
- Elsewhere, major crude benchmarks have rebounded from worst levels earlier in the session, removing a leg of the initial support for Tsys, although weaknesses in most of the major regional cash equity markets is helping to limit downside for Tsys.