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Chinese 10-Year yields have added ~35bp.......>

CHINA
CHINA: Chinese 10-Year yields have added ~35bp month to date. A combination of
cooling of Sino-U.S. trade tensions, stronger economic data & the PBoC
reiterating that it will not employ flood-liker stimulus has pressured the
space. Tuesday 16 April saw the Bank return to the OMO space, injecting CNY40bn
following an 18-day hiatus. Money market and tax pressures could provide further
headwinds for bonds, with some CNY367bn of medium-term loans from the PBOC set
to mature on April 17 (today), while TF securities have suggested that banks
need to set aside as much as CNY600bn for corporate tax payments this month.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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