MNI China Daily Summary: Friday, January 10

MNI BRIEF: China To Adopt Very Proactive Fiscal Policy-Offical

CANADA LIBERAL LEADERHIP VOTE TO REPLACE TRUDEAU SET FOR MAR 9

MNI BRIEF: PBOC Suspends Bonds Trades As Yields Drop

MNI: PBOC Net Drains CNY14.8 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Higher At 7.1891 Fri; -2.36% Y/Y

MNI: FRANCE NOV INDUSTRIAL PRODUCTION +0.2% M/M, -1.1% Y/Y

MNI: FRANCE NOV CONSUMER SPENDING +0.3% M/M, +0.3% Y/Y

MNI: NORWAY DEC CPI -0.1% M/M, +2.2% Y/Y

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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EGBS: Crude Oil Rally Keeps The Pressure On Bund Futures

EGBS
BulletEurozoneFixed Income BulletsMarkets

The bear cycle in Bund futures has extended this morning, with RXH5 -28 ticks today at 131.20. The latest extension higher in crude oil futures has kept the pressure on core FI, with this morning’s regional data not moving the needle. Broader macro focus remains on this afternoon’s US labour market report. 

  • The 131.00 handle provides initial firm support in Bund futures, though downside has seemingly been capped by 131.06 (equating to the 2.60% 10-year Bund yield).
  • The German curve has bear flattened, with 2-year yields 2bps higher and 30-year yields up 1.5bps.
  • This morning, French industrial production was a little stronger than expected, while the Spanish reading was weaker.
  • There was limited reaction in short-end German swap spreads and Euribor futures to reports that the ECB is considering a more stringent framework for banks in assessing future credit default risk.
  • 10-year peripheral spreads to Bunds are little changed, while the OAT/Bund spread has unwound ~1bp of yesterday’s widening.
  • In France, attention is on developments ahead of PM Bayrou's general policy speech to the National Assembly on Tuesday 14 Jan, where a budget is expected to be presented shortly after.
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The bear cycle in Bund futures has extended this morning, with RXH5 -28 ticks today at 131.20. The latest extension higher in crude oil futures has kept the pressure on core FI, with this morning’s regional data not moving the needle. Broader macro focus remains on this afternoon’s US labour market report. 

  • The 131.00 handle provides initial firm support in Bund futures, though downside has seemingly been capped by 131.06 (equating to the 2.60% 10-year Bund yield).
  • The German curve has bear flattened, with 2-year yields 2bps higher and 30-year yields up 1.5bps.
  • This morning, French industrial production was a little stronger than expected, while the Spanish reading was weaker.
  • There was limited reaction in short-end German swap spreads and Euribor futures to reports that the ECB is considering a more stringent framework for banks in assessing future credit default risk.
  • 10-year peripheral spreads to Bunds are little changed, while the OAT/Bund spread has unwound ~1bp of yesterday’s widening.
  • In France, attention is on developments ahead of PM Bayrou's general policy speech to the National Assembly on Tuesday 14 Jan, where a budget is expected to be presented shortly after.