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

EZ/UK Bond Supply Calendar: 4.25% Jul-34 Gilt Due Wednesday

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

MNI: JAPAN NOV CORP GOODS PRICE INDEX +3.7% Y/Y; OCT REV +3.6%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

GILTS: Bid At The Open, Local Risks Back To The Fore This Week

GILTS
CEEMEABulletUKGlobalFixed Income BulletsRegionMarkets

Gilts open a little higher, alongside global peers, but futures remain comfortably within Thursday’s range, last +22 at 101.28.

  • Technicals remain bullish, initial resistance at the Sep 12 high (101.51), initial support at the Sep 10 high (100.64).
  • Yields 1-2bp lower across the curve, light bull steepening.
  • SONIA futures flat to +2.5, back from session highs, while BoE-dated is roughly in line with pre-gilt open levels, covered earlier.
  • Feedthrough from Fed pricing swings continue to dominate, although this week’s tier 1 UK risk events will see local drivers reassert themselves, with the latest BoE decision (Thursday) and CPI data (Wednesday) due.
  • Late Friday saw J.P.Morgan recommend entering tactical 10-Year swap spread narrowers, given their expectations for an uptick in the pace of BoE QT, flatness of the 10-/30-Year swap spread curve & valuations vs. SONIA.
  • In local news, a group of leading economists warned Chancellor Reeves that cuts to public investment would damage the foundations of economy. No surprise there but the comments reaffirm the “difficult” choices Labour faces in the upcoming Budget.
167 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.

Gilts open a little higher, alongside global peers, but futures remain comfortably within Thursday’s range, last +22 at 101.28.

  • Technicals remain bullish, initial resistance at the Sep 12 high (101.51), initial support at the Sep 10 high (100.64).
  • Yields 1-2bp lower across the curve, light bull steepening.
  • SONIA futures flat to +2.5, back from session highs, while BoE-dated is roughly in line with pre-gilt open levels, covered earlier.
  • Feedthrough from Fed pricing swings continue to dominate, although this week’s tier 1 UK risk events will see local drivers reassert themselves, with the latest BoE decision (Thursday) and CPI data (Wednesday) due.
  • Late Friday saw J.P.Morgan recommend entering tactical 10-Year swap spread narrowers, given their expectations for an uptick in the pace of BoE QT, flatness of the 10-/30-Year swap spread curve & valuations vs. SONIA.
  • In local news, a group of leading economists warned Chancellor Reeves that cuts to public investment would damage the foundations of economy. No surprise there but the comments reaffirm the “difficult” choices Labour faces in the upcoming Budget.