US TSYS: TY Blocks

Hong Kong equities opened around flat, but are now down around 1.0% in terms of the HSI. Renewed property market concerns with Evergrande scraping a creditors meeting and revisiting its restructuring plan, appear to be weighing. China Oceanwide, which has operations in real estate, will reportedly be wound up. The HSI Tech sub index is also weaker, down 2%.

• China equity indices are also tracking lower, albeit modestly. Trends are mixed elsewhere, with US equity futures in positive territory, led by the Nasdaq, +0.27% (slightly away from session highs).
• The weaker HK equity tone has seen USD/CNH push back above 7.3000, with the pair last just off session highs at 7.3020. AUD and NZD are also weaker, off by 0.10% at this stage. AUD/USD last at 0.6435, NZD/USD around 0.5955. Both pairs slightly abvoe session lows.
• USD/JPY is holding steady near 148.40.
• US yields are holding higher at this stage, the 10yr yield near 4.455%, +2bps higher.

ACGBs (YM +1.0 & XM +3.5) are slightly richer, after dealing in relatively narrow ranges so far in the Sydney session. With the local calendar light until the release of the CPI Monthly for August on Wednesday, local participants have likely eyed the opening in US tsys. Cash US tsys are dealing flat to 2bps cheaper across major benchmarks in Asia-Pac trade.

• Cash ACGBs are 1-3bps richer, with the AU-US 10-year yield differential unchanged at -15bps.
• Swap rates are 1-3bps lower, with EFPs slightly wider and the 3s10s curve flatter.
• Bill strip pricing is +1 to +2.
• RBA-dated OIS pricing is 2-4bbps softer for ’24 meetings.
• (AFR) RBA governor Michele Bullock is holding off committing to revealing board votes on interest rate decisions and all members giving speeches, as recommended by an independent review. (See link)

The USD/CNY fix printed at 7.1727, versus a Bloomberg consensus of 7.2977.

• Today's fix represents an -1250pip surprise in USD/CNY terms. This compares with Friday's -1299pip outcome.
• The actual fixing has stayed close to the 7.1730 since the start of last week, showing very little deviation.
• USD/CNH sits near 7.2950 in recent dealings, down slightly for the session. This is clsoe to session lows. Earlier highs were near 7.3000.