MNI China Press Digest July 18: PBOC, Beijing, Arctic Shipping

MNI: PBOC Net Injects CNY47 Bln Via OMO Thurs; Rates Unchanged

MNI: PBOC Sets Yuan Parity Lower At 7.1285 Thurs; -1.29% Y/Y

CHINA PBOC CONDUCTS CNY49 BILLION VIA 7-DAY REVERSE REPOS THURS

CHINA SETS YUAN CENTRAL PARITY AT 7.1285 THU VS 7.1318

MNI BRIEF: China Equip't Renewal Policy Includes Foreign Firms

Australia Jun Unemployment Rate 4.0%

Japan Jun Exports +5.4% Y/Y; Imports +3.2% Y/Y

MNI:AUSTRALIA JUN UNEMPLOYMENT RATE +4.1%

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Covid Curbs Back On

US TSYS

Tsys finishing well off early session highs, near midday lows on light holiday volumes (TYH3 appr 675k by the close - had started the session around 300k).
Markets see-sawed lower following mixed midmorning data:

  • Pending Home Sales much weaker than expected at -4.0% MoM vs. -1.0% est (YoY -38.6% vs -36.7% prior); Richmond Fed Index much stronger than expected at +1 vs -10 est.
  • Mkt optimism over China reopening faded as covid infections surged (MILAN REPORTS 50% PASSENGERS WITH COVID IN FLIGHTS FROM CHINA, Bbg; US TO REQUIRE NEGATIVE COVID TEST FOR TRAVELERS FROM CHINA, Bbg).
  • Carry-over curve steepening through the session: 2s10s +6.476 at -47.469, least inverted lvl since mid-November amid fair amount of unwinds in crowded flattener positions going into year end.
  • Fed funds futures have the policy rate peaking at under 5% by mid-'23 and then receding to around 4.5% by year-end - expectation of rate cuts in late 2023 potentially overpriced.
  • Tsy futures dip slightly after $43B 5Y note auction (91282CGC9) tail: 3.973% high yield vs. 3.970% WI; 2.46x bid-to-cover vs. 2.39x the prior month. US Tsy $35B 7Y Note auction Thu (91282CGB1).
BulletMarketsFixed Income BulletsHomepage
BulletMarketsFixed Income BulletsHomepage

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.