Twist-Steepening In China, Strong Rally In Sth Korea After CPI Miss

Asian Government Bonds are dealing mixed.

• China's government curve has twist-steepened, with yields 1bp lower to 4bps higher after Securities Daily reported, citing analysts, that the PBoC may offer a liquidity boost to the market through methods including an RRR cut soon to offset the impact from an increase in government bond sales (See BBG link).
• Meanwhile, "Sales of used residential properties in Shanghai reached 26,374 units in June, up 41% from the previous month and recording the highest monthly transaction in three years after the city slashed downpayments and allowed cheaper mortgages in late May, China Securities Journal reported, citing official transaction data." (per BBG)
• The Caixin services PMI is on tap tomorrow.
• South Korean sovereign bonds are 4-5bps richer across several benchmarks after today’s CPI miss.
• The m/m print fell 0.2%, against a +0.1% expectation. As a result, the headline y/y print was also below forecasts, coming in at 2.4% y/y (2.6% forecast and 2.7% prior). The core, ex-food and energy, measure rose 2.2% y/y in line with the prior outcome and market forecasts.
• Accordingly, today’s data adds to the BoK easing case for the second half of this year. The data calendar is largely light until next Thursday's BoK decision.