Total Derivatives: CNY 1s/5s inversion

Rising liquidity concerns pressured fixings higher on Monday, but a soft PMI report offset any early upside momentum in the short end. Outperformance in the belly of the curve has supported the 2s/5s inversion trend, and one source suggested looking for opportunities to position for a correction in the 1s/3s after the Chinese New Year, writes Deirdre Yeung of Total Derivatives.