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

MNI: US NOV CPI 0.3%, CORE 0.3%; CPI Y/Y 2.7%, CORE Y/Y 3.3%

MNI: US NOV SUPERCORE CPI (CORE SERVICES EX-HOUSING) 0.342%

MNI: US NOV CPI UNROUNDED M/M 0.313%, CORE 0.308%

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-GILTS CASH CLOSE: Early Intraday Weakness Fades Again

BONDS

European curves bull flattened Thursday, with early weakness fading and long end yields pulling back as the session progressed.

  • For the second consecutive session, Gilts staged an afternoon rally, driven by a pullback in BoE hike expectations (down ~6bp from intraday highs set after a speech by BoE hawk Mann).
  • And as with Wednesday, 10Y bund yields pulled back just shy of the 11-year high of 2.5744%, with long-end yields fading globally.
  • With no particular catalyst (and unlike BoE, hike expectations for the ECB didn't shift much Thursday, with peak depo rate still seen at ~3.75%), BTPs outperformed with sharp spread tightening vs Bunds in the afternoon.
  • Eurozone HICP and core CPI picked up 0.1pp in the final reading, but this didn't have a major market impact. Attention early Friday is on final German GDP and comments by Germany's Nagel.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

  • Germany: The 2-Yr yield is down 0.8bps at 2.913%, 5-Yr is down 3bps at 2.551%, 10-Yr is down 4.2bps at 2.478%, and 30-Yr is down 8.5bps at 2.423%.
  • UK: The 2-Yr yield is down 0.4bps at 3.919%, 5-Yr is up 0.9bps at 3.571%, 10-Yr is down 1.3bps at 3.587%, and 30-Yr is down 0.6bps at 3.982%.
  • Italian BTP spread down 3.6bps at 190.4bps / Spanish down 2bps at 96.5bps
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