MNI China Daily Summary: Thursday, December 12

RPT-MNI BOC WATCH: More Gradual Approach Seen After 50BP Cut

MNI BRIEF: Beijing To Protect Firms From U.S. Bill - MOFCOM

MNI: PBOC Net Injects CNY28.8 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1854 Thurs; -1.13% Y/Y

MNI: BRAZIL'S COPOM RAISES SELIC RATE BY 100BPS TO 12.25%

MNI: SWEDEN FINAL NOV CPIF +1.8% Y/Y

MNI:AUSTRALIA NOV UNEMPLOYMENT RATE +3.9%

MNI: US NOV TREASURY BUDGET -$366.8B

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Bear-Steepening Of JGB Curve Extends After BOJ Rinban Operations, Holiday Tomorrow

JGBS

In the Tokyo afternoon session, JGB futures are weaker at 146.04, -26 compared to settlement levels, after reaching a new session low of 145.95 in early afternoon dealings. With the domestic data calendar light today, the catalyst for afternoon weakness appeared to be the results of this morning’s BOJ Rinban operations. The operations showed positive spreads and higher cover ratios (1-3-year: 2.57x, 3-5-year: 3.00x, 5-10-year: 1.86x and 25-year+: 2.39x).

  • Reuters poll: 85% of economists say BOJ will end negative interest rates in 2024, up from 63% in the October poll.
  • Weakness in cash US tsys, 2-3bps cheaper across benchmarks, in today’s Asia-Pac session also weighed on JGBs. That said, US tsy dealings have been relatively subdued as the market approaches the Thanksgiving holiday.
  • The cash JGB curve has bear-steepened. The benchmark 10-year yield is 2.2bp higher at 0.725% versus the cycle high of 0.97% set in late October and the BOJ's 1% YCC reference rate. The 20-year yield is 4.8bps higher at 1.454%, fully reversing yesterday's post-20Y auction rally.
  • The swaps curve has bear-steepened too, with rates 0.4bp to 5.9bps higher. Swap spreads are wider.
  • A reminder that the local market is closed tomorrow for the Labour Thanksgiving holiday. National CPI is due for release on Friday.
BulletMarketsFixed Income BulletsHomepage
BulletMarketsFixed Income BulletsHomepage

To read the full story

Close

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.