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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
- In the past two months, we have seen that China 10Y yield has been testing new lows despite some improvements in economic data.
- The chart below shows that China economic surprises index has co-moved strongly with the 10Y yield in recent years; periods of weakening economic data have been associated with lower LT bonds yields and vice versa.
- China 10Y yield has been constantly reaching lower highs in the past year and broke below its key support at 2.80% in the end of December before trading back above that level in the past two days.
- Interestingly, the market does not seem to be ‘convinced’ by the recent easing measures announced by China officials, and therefore the elevated uncertainty continues to push preference for ‘risk-off’ assets such as government bonds.
- Next support to watch on the 10Y yield stands at 2.7135% (June 2020 low).
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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