CNH: USD/CNY Fixing Another Low, But Error Term Higher

TYZ5 is trading at 112-18, +0-01 from closing levels in today's Asia-Pac session.

• Cash US tsys are 1bp richer to 1bp cheaper, with a steepening bias, in today's Asia-Pac session. On Friday, US tsys finished showing a modest bear-steeper, with benchmark yields 1-4bps higher.
• US equity futures are slightly firmer in today’s Asia session. The S&P looked to be rolling over again on Friday night, down almost 1.5% before it found solid demand during the N/Y session and pared back all the day's losses. The market will be looking toward the release of some US data this week to get a gauge on things and also heavily focused on the upcoming Nvidia results which will heavily impact the direction of markets this week.
• Some postponed data is starting to come into view, with the BLS scheduling September's delayed nonfarm payrolls report for next Thursday, and the Census Bureau set to publish some delayed August data next week. Still, there's no official word on the fate of the October CPI release, which looks very likely to be cancelled altogether.

• CHINA PBOC CONDUCTS CNY283 BLN VIA 7-DAY REVERSE REPO MON

The USD/CNY fix made another fresh low at 7.0816, against a BBG market consensus of 7.0976. The fixing error was little changed a t-160pips (-164pips on Friday). At face value this should support yuan sentiment, although broader USD trends are firmer so far in Monday trade (higher beta FX is underperforming). USD/CNH is little changed so far today, holding near 7.1000. Note the 20-day EMA is around 7.1165, the 50-day at 7.1275. Recent lows have come in near 7.0900, which we couldn't breach on multiple occasions late last week.