Summmarise in 200 characters:

Treasuries sank Monday with losses led by long-end of the curve, leaving 10- to 30y yields as much as 14bps cheaper near highs of the day into Monday close. The move had no major catalyst and seemed to be a reflection of market adjusting towards the prevailing higher for long view, a prospect that seems increasingly likely given recent central bank policy around the world. 10y yields exceed 4.54%, 30y 4.66%, both new multiyear highs. 2s10s and 5s30s ended steeper by 9bps and 8bps respectively, with 5s30s turning positive for the first time since Sept. 6. The selloff erased the impact of Friday’s price action that supported flattening momentum on the back of some short-covering. Flows on the day were pretty quiet with some interest to buy upper left both outright and via strike roll. Cash was better bid along the front-end and back-end alike while inflation microcurve saw some light flattening along the intermediate sector.

In China IG, overall spreads are about 2-3bps tighter on light flows. Headline story today is PINGRE which was up to 5-9pts lower today before closing +2pts off the lows, on a complaint filed to the CSRC about a RMB200mm guaranteed loan dispute uncovered by regulators in its new bond issuance process. The loan dispute was from 2022. So not a completely new issue but shaked sentiment on a weak property name. Post the clarification from the company, bonds retraced 2pts off the lows. Market saw mostly retail and HF type accounts selling, while some HF were adding into the dip. Market also saw some selling in PINGIN on the back of this though levels seem largely unchanged there. Moody's placed the ratings of China Huarong AMC under review for downgrade. 

In China HY, lots of questions on EVERRE post headline, but due to the RSA/election technicality - bonds are still locked at the moment. Most of the names across performing and distressed space down around 25c to 2pt, while equities are also not having a good day either. Market has not seeing much selling in the distressed world due to the technicalities but market is trading ticker by ticker basis. COGARD has selected Houlihan Lokey and CICC as financial advisors to assist on a holistic offshore debt restructuring. China Evergrande Group ex-CEO Xia Haijun, and ex-CFO Pan Darong, were detained by Chinese authorities.  

Rates sell-off the main macro story here but equities held up today and are closing near highs of the session. In Sovereigns, INDON/PHIL sellers on the back of rates move while PKSTAN, SRILAN had better buyers. VEDLN 25: 74/ bid (+1.25 pt) In Indian IG, private sector corps like RILIN and BHARTI saw better selling by real money on Monday. PSU corps were generally well bid, especially the wider ones like POWFIN and RECLIN. Banks and oil names saw balanced two-way flows, with the latter tilted towards better buying (especially on BPCLIN). Spreads are a touch tighter as a result. Indian HY was quite firm on Monday though, with better buying coming through on commodity papers and renewables. The buying was mostly led by retail and fast money. Levels, however, remained largely unchanged. In HY, VEDLN made noteworthy highlights as higher than before the Liability Management whispers started. All the LM proposals signal these 25s would become the longest maturity bond on the curve. So a bit surprising they have gone through the "pre-news" levels.

AT1s closed the day about 0.1pt lower, with some small buying from Europe helping to counteract the worst of the govt bond moves. Italian and Greek names marginally underperformed, but there was no overarching theme to the session. Active names include LBBW, SOCGEN, BNP, HSBC, BACR, UBS, NDASS, CABKSM, INTNED, LPTY and NWG.