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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’s main bond trading platform for foreign investors has 'quietly' stopped providing data on their transactions according to Bloomberg, following the strong outflows observed since the start of the year.
- Foreign outflows of Chinese sovereign debts reached a record 51.8bn CNY in April based on Bloomberg calculations (see chart below) and may continue to remain elevated in the near to medium term as China 10Y bond yield premium (over US 10Y) has now completely vanished following the surge in US LT bond yields.
- In addition, the strong CNY depreciation (partly driven by the MP divergence between US and China) could disincentive investors from holding Chinese assets (including bond).
- China 10Y yield has found support at the 2.80% level in the past week, which corresponds to the 61.8% Fibo retracement of the 2.4610% - 3.3580% range, and the 100DMA. Resistance to watch on the topside stands at 2.8460% (200DMA), which was rejected last month.
Source: Bloomberg
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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