Firmer In Wake Of German State CPI Data, Chinese COVID Press Conference Eyed

Tsys pull higher in the wake of the NRW state CPI readings out of Germany (the country’s most populous state), which provided a much more notable fall in M/M terms vs. median expectations for the national release that will cross later today.

• A reminder that the November round of inflation data is being viewed as a key yardstick re: the increment of tightening that the ECB will go with when it convenes next month.
• TY futures have extended to fresh session highs, while the major cash Tsy benchmarks run little changed to 1bp richer on the day, more than reversing the weakness that was derived from hope surrounding the COVID situation in China overnight.
• Note that headlines are crossing now re: China unveiling policies to boost/speed up the vaccination of its elderly population (allowing the elderly to take a booster 3 months after being vaccinated). This comes ahead of the Chinese health authorities holding a press conference from the top of the hour, with news of that press conference generating speculation re: a potential tweak to the country’s COVID restrictions in overnight trade, which supported the yuan, weighed on the USD and boosted Chinese & HK equities.