EM ASIA CREDIT: Tata Steel (TATAIN, NR/BBB/NR) underperformance moderating

USD/CNH has been drifting lower, last back near recent lows close to 7.3000. The pair found selling interest above 7.3200 in earlier dealings. This also puts us back close to the 20-day EMA support zone for the pair. At the margin, CNH is outperforming slightly softer trends for the majors against the USD. Some support is likely from the strong Hong Kong equity rise, up close to 3% at this stage, while the HS China Enterprise index is up over 3.6%. 

• Focus remains on the upcoming tariff deadline. On Monday, Trump stated talks between the two sides would take place over the next 24 hours, raising hopes of delay in implementation (like Mexico and Canada) received. Trump also remarked they have received great interest in TikTok, (which may also be a factor into part of any deal).
• If we see USD/CNH break down through 7.3000, we have the 50-day EMA in the 7.2860/65 region as the next potential downside target. 

• -6,550 TU at 102-24 1/4
• +2,700 UXT at 111-14+
• Post time 13:16:49, DV01 $240k, flattener trade

*JAPAN 10Y GOVT BOND AUCTION MAY HAVE 99.42 LOWEST PRICE:POLL – BLOOMBERG