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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
- Since the start of the year, China 10Y yield has been constantly reaching lower highs despite the surge in inflation.
- We saw that China PPI inflation, which have co-moved strongly with China LT bond yields, surged to its highest level since June 1995 (up 13.5% YoY).
- The chart below shows that China 10Y yield is currently pricing in lower copper prices.
- The two times series, which have co-moved strongly in the past cycle, have been diverging significantly this year.
- Hence, the constant deceleration in the economic activity combined with the contraction in Chinese liquidity limit the upside gain on China-sensitive commodities such as copper.
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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