Holding Cheaper, A Little Off Worst Levels

Tsy futures hold cheaper, but deal off of worst levels of the session, with participants awaiting the latest round of Caixin PMI data out of China (which is geared towards SMEs, as opposed to the focus on larger firms seen in the country’s official PMI data). Consensus looks for a slightly more notable rate of contraction in Oct vs. Sep when it comes to the Caixin services PMI print.

• Spill over from Wednesday’s FOMC decision has been in the driving seat thus far.
• Note that the Hong Kong & Chinese equity sphere has started on the defensive on Thursday, after Wednesday saw China’s NHC note that the nation’s zero-tolerance approach remains the overall strategy in combatting Covid-19 after social media speculation surrounding background moves towards the planning of and eventual gradual relaxation of COVID restrictions did the rounds in recent days. This has likely helped Tsys find a base.