Tight Ranges In Play, Off Session Cheaps

Tsys have retraced from worst levels of the session, with the cheapening move that came on the back of the modest downtick in China’s daily new COVID case count failing to garner much in the way of lasting traction. Cash Tsys sit somewhere between 1 & 2bp cheaper across the curve, while TYZ2 sits in the middle of its narrow 0-05 range.

• Broader sentiment has looked through the latest incursion of a U.S. naval vessel in the South China Sea, with a lack of meaningful news flow apparent since the Chinese COVID case count headlines crossed.
• In terms of cross-asset inputs, both the Hang Seng (+3.7%) & CSI 300 (+2.5%) are comfortably higher on the day, with the latest leg of support for the Chinese property sector helping there. Elsewhere, news that the NHC and various other Chinese health authorities will be holding a COVID-related press conference later today are aiding sentiment further.