MNI China Daily Summary: Wednesday, July 24

MNI: PBOC Net Drains CNY203.9 Bln Via OMO Wednesday

MNI: PBOC Sets Yuan Parity Higher At 7.1358 Weds; -0.98% Y/Y

CHINA PBOC CONDUCTS CNY66.1 BILLION VIA 7-DAY REVERSE REPOS WEDS

CHINA SETS YUAN CENTRAL PARITY AT 7.1358 WEDS VS 7.1334

MNI BRIEF: China Wants U.S. Firms To Deepen Investment

MNI: US MBA: MARKET COMPOSITE -2.2% SA THRU JUL 19 WK

US MBA: REFIS +0.3% SA; PURCH INDEX -4% SA THRU JULY 19 WK

Market round-up post PMIs

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

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

Bull Steeper With Equities Under Pressure, PMIs In Focus Before 5Y

US TSYS
Homepagemarkets-real-timeBulletMarketsFixed Income Bullets Bank of Canada Market NewsBank of Japan (BOJ) Market News
  • Treasuries are off highs but remain firmer on balance with equity futures weakness (following yesterday’s after-market earnings) and net softer than expected Eurozone flash PMIs (German miss offset a French beat).
  • Curves have steepened further, with the front-end underpinned by yesterday’s particularly strong 2Y auction and seeing further support from former NY Fed President Dudley writing that he's changed his mind and that the Fed needs to cut now rather than wait until September unnecessarily increases the risk of a recession (here).
  • The longer end has seen a larger paring of intraday gains, and follows yesterday’s late sell-off linked to corporate debt issuance. It's helped at the margin by Reuters sources saying the BoJ could next week unveil a plan to roughly halve bond purchases in coming years (along with a debate about hiking which had less impact at the front-end) .
  • A Reuters/Ipsos poll sees Harris lead Trump 44% to 42% in the US presidential race.
  • Cash yields are 0.5-2.5bp lower on the day whilst 2s10s at -18.8bps touches new highs since January, partly a mechanical shunt higher on the new 2Y benchmark but also having steepened both before and after this impact.
  • TYU4 at 110-27+ (- 00+) is off an earlier high of 110-31 but has remained within yesterday’s range overnight, amidst solid cumulative volumes of 330k.
  • There’s some reluctance to push much higher, after Monday’s low of 110-18+ probed support at the 20-day EMA (110-21+) to open the 50-day EMA (110-08+).
  • Data: Weekly MBA mortgages (0700ET), Adv. goods balance Jun (0830ET), Wholesale/retail inventories Jun p/Jun (0830ET), S&P Global US PMIs Jul prelim (0945ET), New home sales Jun (1000ET)
  • Note/bond issuance: US Tsy $30B 2Y FRN Note (1130ET), US Tsy $70B 5Y Note auction - 91282CLC3 (1300ET)
  • Bill issuance: US Tsy $60B 17W bill auctions (1130ET)
294 words

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.
  • Treasuries are off highs but remain firmer on balance with equity futures weakness (following yesterday’s after-market earnings) and net softer than expected Eurozone flash PMIs (German miss offset a French beat).
  • Curves have steepened further, with the front-end underpinned by yesterday’s particularly strong 2Y auction and seeing further support from former NY Fed President Dudley writing that he's changed his mind and that the Fed needs to cut now rather than wait until September unnecessarily increases the risk of a recession (here).
  • The longer end has seen a larger paring of intraday gains, and follows yesterday’s late sell-off linked to corporate debt issuance. It's helped at the margin by Reuters sources saying the BoJ could next week unveil a plan to roughly halve bond purchases in coming years (along with a debate about hiking which had less impact at the front-end) .
  • A Reuters/Ipsos poll sees Harris lead Trump 44% to 42% in the US presidential race.
  • Cash yields are 0.5-2.5bp lower on the day whilst 2s10s at -18.8bps touches new highs since January, partly a mechanical shunt higher on the new 2Y benchmark but also having steepened both before and after this impact.
  • TYU4 at 110-27+ (- 00+) is off an earlier high of 110-31 but has remained within yesterday’s range overnight, amidst solid cumulative volumes of 330k.
  • There’s some reluctance to push much higher, after Monday’s low of 110-18+ probed support at the 20-day EMA (110-21+) to open the 50-day EMA (110-08+).
  • Data: Weekly MBA mortgages (0700ET), Adv. goods balance Jun (0830ET), Wholesale/retail inventories Jun p/Jun (0830ET), S&P Global US PMIs Jul prelim (0945ET), New home sales Jun (1000ET)
  • Note/bond issuance: US Tsy $30B 2Y FRN Note (1130ET), US Tsy $70B 5Y Note auction - 91282CLC3 (1300ET)
  • Bill issuance: US Tsy $60B 17W bill auctions (1130ET)