MNI China Daily Summary: Tuesday, October 8

MNI BRIEF: Japan's Sept Sentiment, Outlook Indexes Fall

MNI BRIEF: China Local Govs To Speed Up Fiscal Spending

MNI: PBOC Net Drains CNY886.9 Bln via OMO Tuesday

MNI: PBOC Sets Yuan Parity Higher At 7.0709 Tues; +4.18% Y/Y

CHINA PBOC CONDUCTS CNY41.7 BLN VIA 7-DAY REVERSE REPOS TUES

MNI: US REDBOOK: OCT STORE SALES +5.3% V YR AGO MO

MNI: US AUG TRADE GAP -$70.4B VS JUL -$78.9B

US NFIB SEP SMALL BUSINESS INDEX 91.5

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

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

JGBS: Muted Session, Solid 30Y Auction, Heavy US Calendar Later In Week

JGBS
GlobalBulletAPACFixed Income BulletsJapanRegionMarkets

In Tokyo morning trade, JGB futures are holding a downtick, -2 compared to settlement levels, after initial post-30Y-supply strength was reversed.

  • Today’s 30-year supply was well absorbed, with the low price beating dealer expectations, the cover ratio steady and the auction tail shortening.
  • Outside of the previously outlined labour cash earnings and current account balance data, there hasn't been much by way of domestic drivers to flag.
  • Cash US tsys are 2-4bps richer, with a steepening bias, in today’s Asia-Pac session after Fed's Musalem stated that the current monetary policy path remains appropriate despite recent jobs data.
  • We have limited US data today, with the focus on the minutes for the September FOMC tomorrow, CPI on Thursday and PPI on Friday.
  • Cash JGBs are mixed across benchmarks beyond the 1-year (+1.9bps), with yield swings bounded by +/- 1bp. The belly of the curve has outperformed with the benchmark 7-year yield ~1bp lower at 0.656%. The 30-year yield is unchanged at 2.126% versus a pre-auction high of 2.1430%.
  • The swaps curve has twist-steepened, with rates 1bp lower to 1bp higher.
  • Tomorrow, the local calendar will see Machine Tool Orders.
181 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 Tokyo morning trade, JGB futures are holding a downtick, -2 compared to settlement levels, after initial post-30Y-supply strength was reversed.

  • Today’s 30-year supply was well absorbed, with the low price beating dealer expectations, the cover ratio steady and the auction tail shortening.
  • Outside of the previously outlined labour cash earnings and current account balance data, there hasn't been much by way of domestic drivers to flag.
  • Cash US tsys are 2-4bps richer, with a steepening bias, in today’s Asia-Pac session after Fed's Musalem stated that the current monetary policy path remains appropriate despite recent jobs data.
  • We have limited US data today, with the focus on the minutes for the September FOMC tomorrow, CPI on Thursday and PPI on Friday.
  • Cash JGBs are mixed across benchmarks beyond the 1-year (+1.9bps), with yield swings bounded by +/- 1bp. The belly of the curve has outperformed with the benchmark 7-year yield ~1bp lower at 0.656%. The 30-year yield is unchanged at 2.126% versus a pre-auction high of 2.1430%.
  • The swaps curve has twist-steepened, with rates 1bp lower to 1bp higher.
  • Tomorrow, the local calendar will see Machine Tool Orders.