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Why MNI
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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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China Futures Make Contract Highs, Unconcerned By Equity Slump
- INDIA: Yields higher in early trade. Markets will await the results of the INR 320bn auction later today (details in earlier bullets), participants will look to see demand at the auction after primary dealers were left to rescue the 6.10% 2031 sale taking INR 111bn of the INR 140bn on offer. The weakness at auction was surprising given that this is a new 10-year line. The 5.63% 2026 line up for grabs also suffered a weak auction on July and INR 104bn of INR 110bn sold was devolved on primary dealers. The RBI have not as yet announced purchase plans for the next GSAP operation. The previous purchase focused in illiquid issues but the sale today could be boosted by inclusion of more liquid lines.
- SOUTH KOREA: Futures are higher today, moving higher amid a decline in equity indices and a reduced slat of sovereign bond issuance in August. 3-Year and 10-Year contracts are near session highs after initially dipping into negative territory. In the cash space yields are lower across the curve with bull steepening seen. 2-/10-Year spread is 0.5bps wider. The won has given back earlier strength as sentiment in the region turns negative, shaking off strong industrial production data earlier in the session. The South Korean MOF will sell KRW 12.5tn of government bonds in August, down from KRW 17.9tn in July.
- CHINA: The PBOC injected a net CNY 20bn today for the second consecutive day after refraining from injections since the end of June. Despite the injection repo rates are higher, the overnight repo rate is up 53bps at 2.1737%, the 7-day repo rate is below yesterday's high but at 2.287% is still above the PBOC's rate. Futures have jumped higher, the 10-year up 21.5 ticks at making a new contract high at 100.10, the sell off in Chinese equities not spreading to bonds today.
- INDONESIA: Yields mostly higher, Indonesia's Financial Services Authority Chair said that the agency is considering extending debt restructuring relaxation amid the resurgence in Covid-19 infections. The final decision will be made by the end of next month. Elsewhere the government said Indonesian central bank will begin to reduce excess liquidity carefully in 2022 and will use other policy tools to support growth.
To read the full story
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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.