MNI China Daily Summary: Friday, April 26

MNI BRIEF: China, US Should Strengthen Dialogue, Cooperation

MNI BRIEF: SNB Framework Reform 'Playing With Fire' - Steiner

MNI: PBOC Conducts CNY2 Bln Via OMO Fri; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: PBOC Sets Yuan Parity Lower At 7.1056 Fri; -4.56% Y/Y

MNI: BAKER HUGHES US RIG COUNT 613; OIL RIGS 506; GAS RIGS 105

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL APR INDEX 77.2

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Futures Unchanged Overnight, US Tsys Cheapen As They Await US CPI & FOMC Minutes

JGBS
BulletMarketsFixed Income BulletsHomepage

In post-Tokyo trade, JGB futures are unchanged compared to settlement levels, despite an extension of last week’s sell-off in US tsys. Trading was, however, subdued ahead of Wednesday's CPI report and the FOMC minutes. US PPI on Thursday.

  • While market movements were well contained, the US tsy 10-year yield rose to the highest since November (4.46%), before finishing 2bps higher at 4.42%. The US 2-year note finished 4bps higher at 4.79%.
  • Fed Funds expectations indicate that the June meeting is almost evenly split between the likelihood of a rate cut and maintaining current rates. The first cut isn't fully priced until August, with just 63bps of cuts currently priced in for the entire year. Essentially, the market is divided between predicting either two or three rate cuts in total.
  • (Bloomberg) -- Governor Kazuo Ueda marks his first anniversary at the helm of the Bank of Japan having dismantled one of the most ambitious stimulus experiments in central bank history with an approach that surprised analysts both for its speed and its success avoiding market ructions. (See link)
  • Today, the local calendar will see the Consumer Confidence Index and Machine Tool Orders data alongside 5-year supply.
194 words

To read the full story

Close

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.

In post-Tokyo trade, JGB futures are unchanged compared to settlement levels, despite an extension of last week’s sell-off in US tsys. Trading was, however, subdued ahead of Wednesday's CPI report and the FOMC minutes. US PPI on Thursday.

  • While market movements were well contained, the US tsy 10-year yield rose to the highest since November (4.46%), before finishing 2bps higher at 4.42%. The US 2-year note finished 4bps higher at 4.79%.
  • Fed Funds expectations indicate that the June meeting is almost evenly split between the likelihood of a rate cut and maintaining current rates. The first cut isn't fully priced until August, with just 63bps of cuts currently priced in for the entire year. Essentially, the market is divided between predicting either two or three rate cuts in total.
  • (Bloomberg) -- Governor Kazuo Ueda marks his first anniversary at the helm of the Bank of Japan having dismantled one of the most ambitious stimulus experiments in central bank history with an approach that surprised analysts both for its speed and its success avoiding market ructions. (See link)
  • Today, the local calendar will see the Consumer Confidence Index and Machine Tool Orders data alongside 5-year supply.