Free Trial

Liquidity Injection Continues, Waiting For Third Plenum Details

CHINA RATES

Overnight muted following treasury yield curve’s continued flattening overnight following a well received 20-year bond auction results. US Yields were mixed albeit in narrow ranges with front-end tenors cheaper while intermediate- to long-end finishing stronger.

  • China bonds opened quiet as the PBOC sold CNY49bn in 7 day reverse repo at 1.8%, to continue to support liquidity.
  • 2 yr CBGs were unchanged at 1.595% and the 10 yr 2.257%
  • The long end followed treasuries lead move lower with the 30 yr moving +1.5bps to 2.467% as markets look to digest expected output from the plenum that wraps up today.
  • Whilst always significant in terms of directional guidance for reform, this plenum potentially will be more closely watched following weaker than expected data during the meeting.
  • For the bond market the output and guidance around ‘Chinese Style Modernisation’ will be analyzed in terms of its impact on financial markets and foreign capital flows.

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.