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
- Even though the market selling pressure has eased following Evergrande's recent comments in a statement that it had 'resolved' one coupon payment due on Thursday, contagion risk had spread to other leveraged real estate developers with their bond prices falling sharply in the past few weeks.
- For instance, the 15% December 2021 Fantasia Holdings Bond (another leading property developer in China) is currently trading at 66 cents on the Dollar, down from 100 in the end of July.
- We previously saw that the policy tightening in addition to the sharp contraction in liquidity over the past year have been important drivers of the significant fall in Chinese domestic asset prices since February.
- Hence, LT government bond yields, which have been very sensitive to Chinese economic data in recent years, have been retracing lower in the past few days.
- The 10Y yield is down 5bps in the past week after failing to break through its 2.91% resistance (50% retracement); key support to watch on the downside stands at 2.80%, which corresponds to the 61.8% Fibo retracement of the 2.46% - 3.36% range (2020/2021 low high).
- A break below that level would open the door for a move down to 2.71%.
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