Summarise in 200 characters:

Treasuries held steady overnight after poor long end price action coming out of mth end. Softer UK PMI helped stage a small bounce off lows along w/ weaker ADP (113k vs 150k exp) as focus shifted toward refunding announcement. Expectation going in was a repeat increase of Aug refunding, but that did not materialize as the Treasury lowered 10s to +2b increase, 20s unch, and 30s +1b increase (+3, +1, +2 expected). Curve bull flattened as 20s outperformed led by US contracts. Buyback update was limited despite refunding question as they still intend to implement next year and look to provide update on timing at Feb refunding. Weaker ISM Mfg, employment and new orders then followed as well as lower JOLTs revisions taking market even higher pushing 10s below 4.80% going into the Fed. Nothing new came out of FOMC, but a more balanced to dovish tone aided a bull steepening reversal pushing 2s below 4.95% and 5s30s 29bps at the close. Flows market saw CB buying 2s and 3s, CB selling 10s and RM/HF selling 30s. 

In China IG, mixed bag today with VNKRLE 5-9pts higher on Reorg article of talkings to banks for a syndicated loan, carrying on the buying momentum from morning into the afternoon across communities. PINGRE seeing some buying in the 24s. AMC space largely muted and unch. New STANLN deal FTT in the afternoon but failed to perform, seeing flippers and lack of top up interest to close 2-3bps wider from reoffer for Asia session. China Vanke in talks with banks including ICBC, BOC, for up to HKD8b new syndicated loans; proceeds to help repay offshore notes due 2024. 

In China HY, continuing the theme of a quiet week with a few specific situations trading. In HY performing property, VNKRLE rally not really bringing much of a relief on other lines with the space trading roughly unch to 1pt lower with RM better sellers. Macau spreads outperforming today as cash levels are unchanged across the space while rates are wider. Industrials trading small with FOSUNI lower again on day and rare lines finding a bid. Evergrande has proposed a new offshore debt restructuring plan, offering to swap debts into c30% equity stake in its listed property service and vehicle units. 

IG Sovs buoyed by rates move but didn’t see much chasing into higher levels. Peripherals more stable although seeing slightly better demand emerge across MONGOL. For IG Corps, firm session with levels 1-2bp tighter on the back of the rates moves. For HY, market supported across India and Indonesia BB names by the trsy move but demand has been light. ADANI 2 ways with selling seen in ADANEM vs buying in ADSEZ mid curve. For SGD space, levels flat to 10c higher. For corporate bullets, active session with RM adjusting positions, while PB flows skewed offer side. Traded both rated and unrated papers in block sizes with bonds finding clearing levels. Levels flat to 10c higher. For corporate perps, the tone was more mixed and bond specific.

AT1 closed the day ~25c higher, with strong buying from street and US investors as treasuries rallied. Most of the gain was rates related however, with z-spreads only 4bps tighter across the space, and only 3bps tighter in USD issues.  European investors were mostly inactive due to the national holidays across the continent.  Higher beta names like DB, SABSM, SOCGEN and UCGIM marginally outperformed, but there were no big drivers - it was a broad-based rally.