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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
- China LT bond yields have been rising in the past two weeks amid surging inflation risks due to strict lockdown policies imposed by the government.
- Global supply chain disruptions will continue to support food prices this year, including pork prices (key component of index).
- China 10Y yield broke back above the 2.8040% pivot level in mid-April (61.8% Fibo retracement of the 2.4610% - 3.3580% range) and is gradually approaching its key ST resistance at 2.8560% (200DMA).
- A break above that level would open the door for a move up to 2.91% (50% retracement).
- On the other hand, US 10Y yield has been consolidating lower in the past week after finding resistance slightly below the 3% level, pushing the China 10Y yield premium back to positive territory.
- We have seen that interest from CNY carry traders has fallen as China 10Y bond yield premium has now completely vanished and therefore has been pressuring the Chinese yuan to the downside.
- USDCNY broke above the 6.60 level today and is up nearly 4% since the start of its rally on April 19.
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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