MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1843 Weds; -1.22% Y/Y

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

EZ/UK Bond Supply Calendar: 4.25% Jul-34 Gilt Due Wednesday

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

MNI: JAPAN NOV CORP GOODS PRICE INDEX +3.7% Y/Y; OCT REV +3.6%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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CREDIT UPDATE: APAC Credit Spread Tighter, Primary Market Slows Ahead Of FOMC

CREDIT UPDATE
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  • Asian equities had mixed performance on Friday, with Hong Kong's HSI up 1.1%, supported by gains in Meituan following a credit upgrade, and Australian shares nearing a record close driven by mining companies. In contrast, Japan's equities are lower as a stronger yen pressured technology and export-heavy sectors, Nikkei -0.40%, while Topix is -0.55%. South Korea’s Kospi and China’s mainland markets are little changed, while investors remained cautious due to uncertainties around the Fed's rate decision and China’s upcoming economic data release.
  • It has been a slow day in APAC credit markets today, NSW Ports Finance priced a 7yr A$250m at ASW+140bps and 10yr A$300m at ASW+160bps, while we continue to see A$ ABS/RMBS deals come to market.
  • There isn't too much to mention about in secondary markets either today, most trading has occurred in the new deals with MQGAU T2 underperforming and look to now close 3-4bps wider than issue, looking across the wider T2 space fxd rate lines are underperforming, while the ANZ perps continues to see strong demand in secondary and is trading 20bps tighter than where it priced just yesterday.
  • Asia IG looks to have steadied after selling off 10bps over the past week or so, we trade unch to 2bps tighter. Banks -1bps, Chems -2bps, O&G -1bps, Energy -1/-2bps, Metals & Mining -2/-3bps. The property space has for the moment found some support, with bonds trading 0.50-1pt higher.
  • Aus iTraxx CDS is 1bps lower at 64bps & while Asia Ex-J iTraxx is 0.5bp lower at 98bps
  • Headlines: "Hong Kong’s Battered Property Market Lures Chinese State Buyers", "Proposed capital rules changes would reduce complexity of bank resolutions - Moody's", " China Vanke - Fitch downgrades ratings from BB- to B+ with negative outlook"
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  • Asian equities had mixed performance on Friday, with Hong Kong's HSI up 1.1%, supported by gains in Meituan following a credit upgrade, and Australian shares nearing a record close driven by mining companies. In contrast, Japan's equities are lower as a stronger yen pressured technology and export-heavy sectors, Nikkei -0.40%, while Topix is -0.55%. South Korea’s Kospi and China’s mainland markets are little changed, while investors remained cautious due to uncertainties around the Fed's rate decision and China’s upcoming economic data release.
  • It has been a slow day in APAC credit markets today, NSW Ports Finance priced a 7yr A$250m at ASW+140bps and 10yr A$300m at ASW+160bps, while we continue to see A$ ABS/RMBS deals come to market.
  • There isn't too much to mention about in secondary markets either today, most trading has occurred in the new deals with MQGAU T2 underperforming and look to now close 3-4bps wider than issue, looking across the wider T2 space fxd rate lines are underperforming, while the ANZ perps continues to see strong demand in secondary and is trading 20bps tighter than where it priced just yesterday.
  • Asia IG looks to have steadied after selling off 10bps over the past week or so, we trade unch to 2bps tighter. Banks -1bps, Chems -2bps, O&G -1bps, Energy -1/-2bps, Metals & Mining -2/-3bps. The property space has for the moment found some support, with bonds trading 0.50-1pt higher.
  • Aus iTraxx CDS is 1bps lower at 64bps & while Asia Ex-J iTraxx is 0.5bp lower at 98bps
  • Headlines: "Hong Kong’s Battered Property Market Lures Chinese State Buyers", "Proposed capital rules changes would reduce complexity of bank resolutions - Moody's", " China Vanke - Fitch downgrades ratings from BB- to B+ with negative outlook"