Narrow Ranges, Light Support From Chinese Tech Worry

Another regulatory-driven dip in Chinese tech equity listings provided incremental support for the U.S. Tsy space during overnight dealing. T-Notes +0-01+ at 133-06+ into European hours, sticking within the confines of a narrow 0-04 range, while cash Tsys print little changed to ~1.0bp richer on the day, with some very modest flattening in play. Comments from Philadelphia Fed President Harker ('23 voter) re: tapering had no real impact on the space. Monday's broader docket is quite limited when it comes to notable economic releases, so it will be a case of headline/flow watching.

• A muted Tokyo session has seen JGB futures drift away from overnight cheaps, printing -3 last, while cash JGB trade sees the major benchmarks trade little changed to ~1.0bp richer on the day. Headline flow has been light since the Tokyo re-open, with plenty of speculation surrounding the local political sphere continuing to do the rounds. Local PPI data was marginally softer than expected, while the quarterly BSI survey saw an uptick in the large firm metrics.
• Cash ACGBs played catch up to Friday's overnight moves, steepening as a result, while futures stuck to tight ranges, leaving YM +0.8 and XM -3.2 at typing. Semi-government paper headlined A$ issuance, with corporate and SSA deals also noted.