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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
- LT government bond yields have surging globally in the past two days amid rising concerns over stagflation risks.
- Until now, we have seen that investors have been attributing more attention to the increase in global uncertainty rather than the rise in inflationary pressures, but volatility on the long end of the curve can remain elevated in the short term as inflation continues to surprise positively.
- China 10Y yield is up nearly 10bps since Thursday and is currently testing its 100DMA at 2.97%; a break above that level would open the door for a move up to 3.0160%, which corresponds to the 38.2% Fibo retracement of the 2.46%-3.36% range.
- On the downside, key support remains at 2.80% (61.8% Fibo retracement).
- This week, investors will focus on money supply and aggregate financing September updates.
- We previously saw that the sharp contraction in Chinese liquidity in the past year has been weighing on both domestic (i.e. tech equities) and international asset prices.
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.
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