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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
- We have seen that the significant rise in uncertainty has been pushing long-term bond yields down globally as investors fear that growth expectations will start to gradually shift lower as we approach Autumn.
- We have seen that a range of economic and financial variables has been showing that Chinese economic activity peaked in February (i.e. Li Keqiang index, China equities).
- In addition, Chinese 'liquidity', which we measure as the annual change in the Total Social Financing (TSF) 12M sum, has been contracting sharply since Q4 2020, down from over 10tr CNY in October 2020 to nearly 0 in June 2021, which has generally coincide with preference for safe assets (i.e. USD, government bonds).
- The chart shows that China 10Y yield broke below its 2.91% key support this week; next support to watch on the downside stands at 2.85%, followed by 2.80% (61.8% Fibo retracement of the 2.46% - 3.36% range).
Source: Bloomberg/MNI
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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