Summarise in 200 characters:

Treasuries bull steepened following weaker than expected claims and NAHB Housing Index. Fed speakers remain cautious in their comments, emphasizing more evidence is needed before they can be certain inflation is on a sustained path to 2%. However, with recent weaker data, market would expect to see dip buying in duration and in the curve. Flows saw RM selling 5s, 10s, 20s, 30s, buying 7s, while HFs were two ways in 2s, selling in 5s. Tomorrow market gets Housing starts. Collins, Barr, Daly, and Goolsbee will be on tape. 

In China IG, relatively quiet morning sessions given most attention has been on HRINTH. Most of the TMT names were largely unch while long end TMT got some actions with RM outflow selling XIAOMI and MEITUA. Market is very active again on HYUELE curve with curve move 3-5bps tighter on back of RM buying. In financials side, HRINTH +2-4pts with the belly correcting and curve normalising in spread, while BNKEA not much reaction today with the space unch to a touch wider despite the negative outlook by Moody’s. 

In China HY, flows lightening up after a flurry of trades yesterday across sectors, if anything market is finding some consolidation on outperforming sectors with Macau flows two-way across last night and this morning with RMs focused on switch trades between names, space is trading 0.25-1.25pts higher with rating action the driver for performance. China property continues to grind along without significant flows, LNGFOR have been eerily quiet on back of the downgrade with scrappy sellers early in the morning that's not followed up by much flows after, generally market is trading 0.5-1pts lower in the complex. GEMDAL the only other active line in the space with bonds 4pts higher and finding two-way clearing as onshore bond prices rebounded through the week. Elsewhere, Market has been trading actively today in HK assets with NWDEVL/LASUDE/PCPDC all finding some interest, bonds are +/- 0.5pt in the space.

In Sovereigns, INDON/PHIL 2-4bps tighter in terms of spreads and cash prices only 0.125-0.5pt lower. Some ETF selling but getting absorbed into sharp bids. SRILAN closing 0.25-0.75pt lower. In IG, another decent move in rates last night post retail sales, but tone in credit appears firm. Flows overnight have generally been better selling from RM/ETF accounts across PETMK/EXIMBK but they seem to have subsided in a fairly muted session with flows becoming more two-way later during the day. In Malay light buying across the PETMK curve initially followed by RM/ETF selling in the afternoon, PETMK unch-1bp tighter, KNBZMK unchanged. In India usual PB buying with RM/PB buying RILIN duration unchanged to about 2bp tighter. In Thai RM buying BBLTB 28, PTT complex long ends saw some two-way flow. In HY, overall a quiet morning with levels consolidating after the rally in past 1-2 weeks. Flows still skewed to marginal better buying with level ~0-0.125pt to account the treasury selloff overnight. 

AT1s closed the day about 0.10pt lower, with recent deals underperforming as the volume of supply starts to weigh on the market a bit. BACR struggled all day, trading around 100.05 for most of the morning but sagging below par as the afternoon wore on. SANTAN printed at 9.625% for both tranches. Appears 0.125% richer than FV, but not very generous given the weaker tone. SOCGEN and UBS new deals closed 0.25-0.5pts lower, with some selling from both Europe and US investors. Active names include SOCGEN, BNP, ACAFP, HSBC, DANBNK, BACR, DB, KBCBB and BKIR.