Futures Edge Higher As Equity Markets Decline

The PBOC matched maturities with injections for the thirty sixth straight session, the last time the bank injected funds into the financial system was Feb 25. The overnight repo rate down 21bps to 1.7891%, the 7-day repo rate up 23bps at 2.28%, above the prevailing 2.20% rate.

• Futures are slightly higher in China as equity markets decline, 10-year up around 7 ticks at 97.80. There could be some caution around Chinese assets, Fitch downgraded China's Huarong's credit rating to BBB from A, warning of potential further downgrades. Fitch is the first of the big ratings agencies to downgrade the distressed debt manager, and said that there are risks if the Chinese government withholds indications of support.
• Tensions with the US have arisen in an unlikely area, coronavirus support. China has offered to help India deal with its surge in coronavirus cases, and criticized the US for acting too slowly.