Tsys based in early London hours.

• Bears couldn’t force a test of technical support in TYZ3 (109-19), while some stabilisation in wider core global FI markets also helped at the time.
• Asia-Pac cheapening drivers included hawkish weekend comments from the BoJ, firmer than expected Chinese credit data and a bid in both Chinese equities (which faded into the close) and e-minis (also off best levels at typing).
• Reports of $-denominated issuance out of the UAE (BBG sources flagging minimum of $1bn of issuance later this month after the UAE hired banks for the deal) did little to the impact the space when the news hit.
• Recovery highs have given way in recent trade, with broader core global FI back on the defensive.
• TYZ3 last -0-06+, a little off Asia lows, while cash Tsys are flat to 3.5bp cheaper as the curve steepens.
• New York Fed inflation expectations highlight a limited NY data docket, with 3-Year Tsy supply also due.