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No Move On Firmer Inflation Data Out Of China, Focus On U.S. CPI

US TSYS

Tsys looking through the firmer than expected Chinese inflation data, with TYZ1 not blinking, last -0-05 at 131-22, operating within a 0-04 range thus far. Cash Tsys run 0.5-1.0bp cheaper across the curve. China's NBS noted that the weather and commodity prices impacted October's CPI reading, while the PPI reading was driven by tight supply in the energy and materials spaces. It is probably a case of these being known factors when it comes to the broader inflationary picture, as well as a sense of the market having bigger fish to fry later today i.e. U.S. CPI.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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