MNI China Daily Summary: Thursday, April 22

MNI BRIEF: China To Quicken Resolving Local Debt Risks

RPT-MNI INTERVIEW: ECB's Wunsch Sees At Least Two Cuts By Dec

MNI: PBOC Conducts CNY2 Bln Via OMO Mon; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS MON

MNI: PBOC Sets Yuan Parity Lower At 7.1043 Mon; -4.74% Y/Y

EZ/UK Bond Supply Calendar: EU, FI Synds; IT, DE Auctions Tues

MNI: CANADA MAR INDUSTRIAL PRICES +0.8% MOM; EX-ENERGY +0.8%

NBH Data Watch

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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20-Year Supply Digested Smoothly; Cover Weakens

JGBS

The latest round of 20-Year JGB supply was absorbed smoothly enough, with the low price printing comfortably above wider expectations (which stood at 102.400, per the BBG dealer poll), while the price tail narrowed when compared to the previous auction. On the other hand, the cover ratio painted a slightly weaker picture of demand, moderating to 3.28x from the previous auction’s 3.63x, a little below the six-auction average of 3.37x.

  • As highlighted in our preview, the richening observed in 20s away from cycle cheaps as well as its richening on the 10-/20-/30-Year butterfly since June, likely provided headwinds for demand.
  • Still, the auction priced well, likely aided by the continued home bias for Japanese investors, amidst elevated FX-hedging costs and continued market volatility. These factors probably meant that demand from life insurers for super-long JGBs remained evident, in line with their previously outlined investment intentions.
  • 20s have firmed in the wake of the auction, richening by ~1.5bp vs. pre-auction levels.
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