Free Trial

Looking Through Chinese Data

US TSYS

Not much in the way of notable reaction in Tsy futures when it comes to the soft Chinese services PMI data. Although the reading was much softer than expected (36.2 vs. BBG median of 40.0, representing the fastest rate of contraction observed since the initial COVID outbreak in early ‘20) the market was already looking for a weak print given the well-documented, localised COVID restrictions that have been implemented in China. The key findings of the survey largely reflected knowns. The details revealed the quickest fall in service sector output for over two years as COVID-19 restrictions tighten, a decline in new business gathering pace & a slight fall in employment. Still, Caixin noted that “businesses were moderately optimistic. Even as regional Covid-19 outbreaks dragged on, entrepreneurs were confident that they would be brought under control, although some worried that the control measures would last too long."

  • TYM2 had taken out Wednesday’s highs ahead of the release, aided by a soft start to equity trade for the Chinese tech sector, but now sits off of best levels, dealing +0-01+ at 119-06+, operating in a 0-12 range with volume nearing 40K lots.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.