Summarise in 200 characters:

Today the market reversed almost half of yesterday’s move, bear flattening during today’s session. Retail sales data was better than expected +.1 vs -.2 (ex auto) with upward revisions from last month and Empire manufacturing 9.1 vs -3.0.  PPI was lower than expected on the headline ex energy and trade +.1 vs +.2, but the healthcare component came in very higher +.73, which feeds into PCE. The better data and 7 companies (total of $13Bil) came to market to take advantage of the lower rates, headlined by Tapestry’s $4.5Bil 5 part deal and Carriers $3bil 3part deal took 10s to 4.555% at the highs and 5/30s to 15.25 at the flats.  During the session market saw CB selling 3s, 10s and buying 30s, HF selling 7s, RM buying 2s, 3s, and 30s.  

In China IG, tone across opened firmer yesterday on the back of the stronger macro backdrop. Duration and higher beta papers outperformed as better buying for beta China tech. Activity in the afternoon slowed with more benign price action into the close. China/HK were trading -3-10 bps tighter. China retail trade and industrial production were better than expected in October, but sequential growth momentum appears to have softened lately. PBOC will likely have to cut its MLF policy rate by 15bps in December. Longfor: Ratings downgraded to Ba1 from Baa3 as contracted sales, credit metrics likely to decline; outlook negative - Moody's. 

In Sovereigns, one way in the morning albeit in small sizes but more two-way in the afternoon. INDON/PHIL marked 0.75-2pt higher with spreads +/-2bps. No signs of anyone fading this move as yet, but some selling overnight and more supply outside Asia is expected. Frontiers however aren't moving with this market bounce. SRILAN about 0.25pt lower and MONGOL is unchanged with some demand in the front end again. In IG, firm tone in the space after last night's macro moves although the flows that seems to be geared towards better selling from RMs vs light buying from ETFs. In Malay, RM selling the PETMK curve overnight while it has been more quiet this morning on the flow side with light ETF buying. There was a flurry of street lifts in the belly/long-ends today. Afternoon, selling of PETMK 32 and KNBZMK new issues. PETMK is 2-5bps tighter while KNBZMK is 1-2bps tighter. In India, better selling in front-ends today with RM selling in EXIMBK overnight and more selling in EXIMBK 10yr. Some two-way flows in RILIN although RILIN 32 had a downprint +138 towards the close. 1-3bps tighter. In Thai, RM selling of TOPTB 30 yesterday both in Asia and US hours, with bonds coming out and a +169 trace print. Some TOPTB 28 also came out today. BBLTB 33s lifted on street and are about 4bps tighter. HY traded about 0.375-1pt higher on the back of rates rally with long end HY such as MEDCIJ 29 STENGE 38 JSTLIN 32 outperforming. Overall flows however were muted with laggard such as ADANI continually getting chased post tender. TTMTIN +0.5-1.25pt post S&P upgrade. For ref 3/5/10y ~+0.5/0.875/1.375pt. CDX +0.67pt.

AT1s closed the day about 0.25pt higher, but off the highs of the day as treasuries give up some of their recent gains. The focus of the day was BACR however, who managed to trump SOCGEN and UBS by tightening a massive 87.5bps from IPT to pricing for their new PNC7 AT1, printing 1.75bn at 9.625%.   Books were apparently very robust but that is quite a tightening. Their secondary curve was the outperformer of the day, closing 80c higher. Activity across names was brisk, with decent buying again in the morning with some profit taking in the afternoon. Active names include in LLOYDS, SOCGEN, BNP, ACAFP, INTNED, HSBC, UBS, BACR, UCGIM, BNS and DANBNK.