Some Light Twist Steepening Now In Play

Lower oil futures prices have seemingly provided some modest support for the Tsy space since our previous bullet covering Tsys, with no major reaction to the softer than expected Chinese Caixin m'fing PMI print, which built on the softer than expected official m'fing PMI release that hit over the weekend (a reminder that the Caixin print is focused on SMEs, while the official reading is geared towards larger companies). T-Notes still operate within a very narrow 0-03 range, and last trade +0-03+ at 134-18, which equates to best levels of the day. The curve has twist steepened, with paper out to 5s richening by ~0.5bp on the back of the aforementioned dip in oil prices, while 20s and 30s are still ~1.0bp cheaper on the day, with e-mini futures holding higher.