Summarise in 200 charaacters:

Market fatigue took over core fixed income markets globally after an impressive run during the month of November. Weaker data and lower inflation prints out China and EU were largely ignored overnight. Today’s slightly lower PCE print (core +.16 unrounded) and higher continuing claims also failed to support the market as market sold off from the 8:30am data, the selloff continued after a huge beat on the Chicago PMI data (55.8 vs 46) apparently due to auto strike ending, not sure how that wasn’t already factored in by the Surveyed Economists. This took 10s to 4.363% and flattened the curve. During the session market saw good 2 way flows: CB buying 2s and 5s, HF selling 2s, 5s, 20s and 30s, and RM buying 2s, 5s, 20s and 30s. There wasn’t much of a bounce in prices into the 4pm ME indexing, but market will look to fade rallies with tight stops ahead of ISM manufacturing (10am) and Powell at 11am tomorrow.  

In China IG, active session given month end. Flood of front end paper coming out, baba 24 for example, widened 20 bps in the past 2 sessions. Other 2024/2025 paper also coming out, with locals less interested to buy these given tight funding. High beta stuff on the other side has been quiet. WB announced new CB, MEITUA stabilized given stock also trading okay. It also feels like with the rates move, everyone is in a rush to extend duration. Market still has some TENCNT long end to offer. Spread wise generally unchanged with front end anywhere from 10-20 bps wider. Perp also under-performed, not going higher regardless of rates move.

In China HY, ETFs remain net buyers of Macau into month end, spreads grinding back to YTD tights alongside rates rally, supply into this have been RMs taking profit and cleaning up lines across, space trading 0.125-0.375pt higher on back of the passive flows. China real estate remains weak, small amount of buying in VNKRLE/LNGFOR but the best of the rest continues to grind lower on RM sellers cleaning up for next year, overall market is unch to 3pts lower as a result on thin flows. New world is quiet today, bullets continue to see selling but levels look better stabilized now on the perps as we grind back to levels lower than pre-tender offer. Industrials saw better selling overall but pressure's abated from yesterday for the most part, generally 0.5pts lower.

In Sovereigns, INDON/PHIL traded 0.25-0.5pt higher. Frontiers have been a lot more active with SRILAN taking the lead. Constructive two-way flows from both ETF and RM trading 0.25-0.375pt higher in good volumes. In IG, another huge rally in rates overnight with sentiment firm. Generally better buying overnight across the IG space although there were also some sellers into the move while today flows were more muted with ETF/PB activity mostly. Malay, two-way in PETMK overnight with ETF buyers vs light RM selling today and India better buying from ETF/PB accounts. Some demand Thai space with PTTGC trading in the belly both overnight and in Asia, still small selling of Thai Banks. In HY, tone continues to be firm into close with level +0.125-0.5 higher. Sentiment remains constructive with laggard getting chased. Adani +0.25-0.375pt with demand seen in ADSEZ mid curve. Continued buying interest in ADANIG 24 seller ADANEM 30. India renewables and corporates traded unchanged to +0.5pt - OWIC seen in small size. Buyer GRNKEN 28 , CLRNPW 27. JSTLIN, JSWIN buying interest while sellers emerged in SHFLIN 25.

AT1s closed the day about 0.2pt higher, marginally off the highs as treasuries gave back some ground. Nevertheless, there was underlying buying interest from asset managers and private wealth all day. It also seems like investors are starting to give up on the chance of more supply before the end of the year, which is helping secondary demand. Volumes were good, with month end flows from ETFs and asset managers prevalent. Activity mainly in SOCGEN, BNP, ACAFP, LLOYDS, HSBC, SANTAN, ISPIM, BACR, BNS, UBS and DB.