Asia cross-assets are trading with a light positive risk tone after the choppy price action stateside where drive heading into the close lifted the S&P 500 to a fresh record high. Evergrande is also weighing on the positive sentiment as the company is reportedly paying USD 83.5mln bond interest payment due on September 23rd. Worth noting that tomorrow’s grace period expires. This could drive traders to reprice the risk premium in Chinese bonds in the session ahead.
On the trade front, reports note that the US is seeking a virtual summit between US President Biden and Chinese President Xi in November and aims to show responsible handling of China ties. For today, the macro calendar is somewhat light, with global PMI reports on the radar. Traders will be paying attention to Central Banks speeches with Fed’s Powell, Williams & Daly and ECB’s Villeroy. The global fixed income markets are sensitive to any new comment regarding monetary policy guidance as investors are repricing global inflation and growth expectations for the coming quarters.
