Free Trial

Chinese COVID Speculation Allows Early Cheapening To Extend

AUSSIE BONDS

Chinese COVID matters remain front and centre for the space, with speculation surrounding the previously alluded to press briefing that will be held by the Chinese health authorities later today (more colour on that in earlier bullets) extending the cheapening move that initially came on the back of the slight moderation in new daily COVID cases in China.

  • As we have noted elsewhere, speculation surrounding the potential for a complete re-opening seems a bit misplaced to us, although there may be further tweaks to China’s ZCS announced at the press conference.
  • Cash ACGBS run 6-10bp cheaper on the day with the 10- to 12-Year zone leading the weakness.
  • There hasn’t been anything in the way of meaningful idiosyncrasies for participants to trade off.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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.