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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 retracing higher in the past week, following the global momentum as inflation continues to surprise positively in most of the economies.
- Even though the accommodative policies adopted by China officials to offset the elevated cost of the ‘zero-Covid’ policy could lead to new downside retracement in China bond yields in the near to medium term, renewed disruptions cause by the latest covid lockdowns are now a greater risk for both domestic and global inflation.
- The PBoC announced a 25bps cut in the RRR over the weekend (as expected), lowering the required reserve ratio for all financial institutions to 11.25%, lowest level since May 2007 (effective from April 25).
- China 10Y yield broke back above the 2.8040% ‘pivot’ level this week and is currently testing its key resistance at 2.84%, which corresponds to the high of its LT downward trending channel.
- A break above that level would open the door for a move up top 2.8630% (200DMA).
- On the downside, support to watch below 2.8040% stands at 2.7390%, followed by the key 2.6730% level (76.4% Fibo).
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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