Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA
- After retracing sharply higher in the first half of October to hit a local high of 3.05% on Oct 18 (highest level since July), China 10Y yield has been retracing lower in the past two weeks, breaking below its 100DMA (2.95%) on Monday.
- We saw that the risk-on environment in October, mainly driven by a sharp drop in price volatility and some JPY depreciation, generated a rally in risky assets and a bear consolidation in LT bonds.
- However, the situation seems to have reversed in the second half of last month, therefore leading to a retracement in LT bond yields.
- China equities have also been consolidating lower in the past two weeks, with the Hang Sang Index down nearly 5% since its mid-October high.
- Yield curves in some EM economies have been flattening in recent weeks as central banks have maintained their aggressive tightening cycle to curb the inflationary pressures despite the surging uncertainty.
- Next level to watch on the downside on China 10Y yield stands at 2.91%, which corresponds to the 50% retracement of the 2.46%-3.36% range (2020/21 low high), followed by 2.90% (50DMA).
- On the topside, first resistance stands at 3%, followed by 3.0160% (38.2% Fibo, LT downward trending resistance line).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok