MNI China Daily Summary: Monday, February 10

MNI BRIEF: PBOC'S Zou Promoted To Vice Governor Role

MNI BRIEF: China Steel To See Limited Impact From U.S. Tariffs

MNI: China CFETS Yuan Index Down 0.15% In Week of Feb 7

MNI: PBOC Net Drains CNY234 Bln via OMO Monday

MNI: PBOC Sets Yuan Parity Higher At 7.1707 Mon; -1.31% Y/Y

MNI: NORWAY JAN CORE CPI +0.1% M/M, +2.8% Y/Y

MNI: NORWAY JAN CPI +0.2% M/M, +2.3% Y/Y

MNI: US DEC CONSUMER CREDIT +$40.8B

GERMANY: Economy Ministry Lowers 2025 Growth Forecast As Expected

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

GERMANY: Kukies Considers Potential Non-Implementation Of 2024 Suppl' Budget

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EGBS: Bunds Drift Towards Session Lows, Trump Inauguration In Focus

EGBS
BulletEurozoneFixed Income BulletsMarkets

Bund futures have drifted towards session lows, currently -18 ticks at 131.60. Volumes are below recent averages, with proximity to US President-elect Trump’s inauguration and today’s US MLK holiday limiting activity.

  • German cash yields are up to 1bp higher, leaving 2s10s at ~30.5bps, 5bps shy of this month’s highs.
  • German December PPI was a little softer-than-expected at -0.1% M/M (vs 0.3% cons) but had little lasting market impact.
  • ECB’s Schnabel and Holzmann provided characteristically cautious/hawkish comments over the weekend and this morning.
  • Spreads have been set for today’s 3/10-year EFSF transaction.
  • France has issued a mandate for a 15-year OAT transaction - MNI pencils in a transaction tomorrow with a E5-7bln size. Long-end OAT/Bund spreads have seen modest (~0.5bps) widening pressure following the announcement. A reminder that MT OAT and IL OAT supply is also due later this week.
  • In the peripheral space, SPGBs and PGBs underperform a little, with spreads to Bunds 1bp wider.
  • Global macro focus remains on Trump's inauguration this afternoon, and any immediate policy announcements. US tariff policy is a key source of uncertainty for the Eurozone economic outlook, and by extension ECB policy. 
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Bund futures have drifted towards session lows, currently -18 ticks at 131.60. Volumes are below recent averages, with proximity to US President-elect Trump’s inauguration and today’s US MLK holiday limiting activity.

  • German cash yields are up to 1bp higher, leaving 2s10s at ~30.5bps, 5bps shy of this month’s highs.
  • German December PPI was a little softer-than-expected at -0.1% M/M (vs 0.3% cons) but had little lasting market impact.
  • ECB’s Schnabel and Holzmann provided characteristically cautious/hawkish comments over the weekend and this morning.
  • Spreads have been set for today’s 3/10-year EFSF transaction.
  • France has issued a mandate for a 15-year OAT transaction - MNI pencils in a transaction tomorrow with a E5-7bln size. Long-end OAT/Bund spreads have seen modest (~0.5bps) widening pressure following the announcement. A reminder that MT OAT and IL OAT supply is also due later this week.
  • In the peripheral space, SPGBs and PGBs underperform a little, with spreads to Bunds 1bp wider.
  • Global macro focus remains on Trump's inauguration this afternoon, and any immediate policy announcements. US tariff policy is a key source of uncertainty for the Eurozone economic outlook, and by extension ECB policy.