Off Lows As Chinese Equities Struggle, Back To Little Changed

Dip buying has kicked in over the last hour or so, with Chinese equity markets opening on the defensive as concerns surrounding the well-documented headwinds for Chinese economic activity weigh on mainland and Hong Kong equity indices ahead of the week-long Chinese holiday, which gets underway on Friday.

• The earlier disclosed liquidation of some of Evergrande's private shareholdings is presenting a relief rally for the name, although questions remain whether the move will provide much in the way of meaningful medium-term reprieve for the firm (as we discussed earlier).
• T-Notes last +0-03 at 131-18, while cash Tsys now sit little changed to 1.0bp richer across the curve, with the belly leading the rally. The earlier cheapening & steepening has been more than fully unwond.