T-Notes Unchanged After Thursday's Curve Steepening

A muted start for T-Notes, operating around late NY levels, last unchanged at 134-07.

• Tsys softened on Thursday, although they finished a little off of NY cheaps, with some bear steepening in play on the curve as the shorter end finished little changed while the longer end cheapened by ~4.0bp.
• The stabilisation and indeed relief rally in the Chinese equity space was probably the core building block that Thursday's move was bult on, with the U.S. equity space also seeing a modest uptick. Some idiosyncratic drivers also added to the macro theme, with Apple announcing a 4-part round of issuance ($6.5bn)
• Advanced U.S. Q2 GDP data missed exp. which provided a knee-jerk lift for Tsys, although analysts were quick to point to the inventory-driven nature of the release. The weekly jobless claims data wasn't as favourable as exp., with some modest upward revisions to the previous week's readings also seen.
• 7-Year Tsy supply tailed by 1.0bp, with the cover ratio ticking lower, moving below its recent average, while dealer participation nudged higher, although it held below its own recent average.
• There is a lack of meaningful event risk slated for Asia-Pac hours, with Friday's U.S. docket headlined by PCE data and the latest MNI Chicago PMI reading. Elsewhere, St. Louis Fed President Bullard ('22 voter) will speak on the economy.