Free Trial
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.
CHINA
- Recently, we have seen that despite the recent surge in inflation, which 'pushed' Chines authorities to launch price controls on key consumer goods on corn, wheat and pork, the 10Y yield has remained almost unchanged (up 7bps) and is currently trading slightly below its 3.18% resistance (100D and 200D SMA).
- The chart below shows that China currently offers a 10Y real yield of -5.8% when we adjust by PPI inflation, the lowest among the EM World.
Source: Bloomberg/MNI
- As the annual growth in M1 money supply growth has been falling since the start of the year, real money growth (adjusted by PPI) has been contracting sharply in recent months, which has historically been associated with higher China LT bond yields.
- The chart below shows that real M1 money supply and China 10Y yield have been diverging significantly in recent months after co-moving strongly in the past 15 years.
Source: Bloomberg/MNI
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok