Tsys Firm Further After Chinese Data Misses

Weaker than expected Chinese economic activity data has allowed the previously outlined risk-negative price action to extend further, with TYM2 tagging a fresh session high as a result, last +0-07 at 119-12+. Note that the data included an uptick in the surveyed unemployment rate, which hit the highest level observed since Feb ’20 (the initial COVID outbreak). China’s NBS noted that April’s COVID outbreak had a “big impact on the economy,” with economic stabilisation and a gradual recovery expected. Elsewhere, comments out of Shanghai continue to stress caution on the COVID front, with city officials noting that many social mobility restrictions are set to remain in place as the city gradually re-opens from today. The officials also noted that the city will look at returning to normal life during June.