More Contained Than Equities On Latest China Property Stimulus Hopes

While there has been a modest cheapening bias across core global FI markets since the BBG sources story suggesting that “China is working on a new basket of measures to support the property market after existing policies failed to sustain a rebound in the ailing sector” crossed, the move has been relatively contained, even as S&P 500 e-minis break initial technical resistance levels.

• Feedthrough from the Chinese equity bid had already created a cheapening bias for core global FI, watering down the immediate impact of the recent headline flow on the space, with participants focused on the impending NFP print.