MNI China Daily Summary: Friday, December 13

MNI BRIEF: PBOC To Curb Any Yuan Overshot : PBOC Zou

MNI: GERMANY OCT EXPORTS -2.8% M/M (VS FCST -2.6%)

CHINA YTD NEW LOANS CNY17.1 TRLN VS MEDIAN CNY17.5 TRLN: PBOC

MNI: PBOC Net Injects CNY14.2 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Higher At 7.1876 Fri; -1.22% Y/Y

MNI: EUROZONE OCT IP +0% M/M, -1.2% Y/Y

MNI: SPAIN NOV HICP +0% M/M, +2.4% Y/Y

MNI: FRANCE NOV HICP -0.1% M/M, +1.7% Y/Y

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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JGBS: Cash Bonds Cheaper At Lunch Ahead Of 40Y Supply

JGBS
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At the Tokyo lunch break, JGB futures are weaker, -11 compared to the settlement levels.

  • Outside of the previously outlined BoJ July MPM, there hasn't been much by way of domestic drivers to flag.
  • Cash US tsys are ~0.5bp richer in today’s Asia-Pac session after yesterday’s bear-steepening.  Today’s US calendar will see Weekly Claims, GDP, PCE, Cap Goods, Durables, and Pending Home Sales data alongside a flurry of Fed speakers: Barr, Cook, Kashkari, Williams and Chairman Powell.
  • Cash JGBs are cheaper across benchmarks, with the 40-year (+3.3bps) leading ahead of today's supply.
  • The late July auction of 40-year JGBs encountered a tepid reception, with the actual high yield overshooting dealer expectations.
  • The current 40-year auction yield is approximately 5bps lower than in late July, but the 20/40 yield curve is 15bps steeper and near the steepest for the past 12 months.
  • Swap rates are flat to 6bps higher, with the curve steeper. Swap spreads are mixed.
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At the Tokyo lunch break, JGB futures are weaker, -11 compared to the settlement levels.

  • Outside of the previously outlined BoJ July MPM, there hasn't been much by way of domestic drivers to flag.
  • Cash US tsys are ~0.5bp richer in today’s Asia-Pac session after yesterday’s bear-steepening.  Today’s US calendar will see Weekly Claims, GDP, PCE, Cap Goods, Durables, and Pending Home Sales data alongside a flurry of Fed speakers: Barr, Cook, Kashkari, Williams and Chairman Powell.
  • Cash JGBs are cheaper across benchmarks, with the 40-year (+3.3bps) leading ahead of today's supply.
  • The late July auction of 40-year JGBs encountered a tepid reception, with the actual high yield overshooting dealer expectations.
  • The current 40-year auction yield is approximately 5bps lower than in late July, but the 20/40 yield curve is 15bps steeper and near the steepest for the past 12 months.
  • Swap rates are flat to 6bps higher, with the curve steeper. Swap spreads are mixed.