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

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Market Roundup: Reversal Tuesday, 10YY Sub-3% Again

US TSYS
Rates trading stronger, near recent highs on strong volumes (TYU2>800k). Yield curves bull flattening with bonds leading -- unwinding much of Mon's weakness Current 30YY 3.1211% after nearly tapping Mon's 3.2044% high overnight; 10YY back below 3.0% at 2.9644% vs. 3.0621% overnight high.
  • No specific driver for the reversal, trading desks say, though there are "big short positions per JPM survey .. while we usually rally through supply," on added, citing Tsy coupon auctions that start w/ $44B 3Y notes today.
  • "Today is a buy everything day," another quipped as stocks bounce (ESM2 +12.5 at 4133.0; Gold +10.30 at 1851.73; WTI crude +1.25 at 119.75.
  • Technicals for TYU2 at 118-14.5 (+17): still below the 50-day EMA - at 120-04+ today. The EMA represents a key resistance and a clear break would allow for a stronger recovery towards 122-00. The recent move away from the average however, suggests the corrective cycle since May 9 is over. An extension lower would open key support and a bear trigger at 116-21, May 9 low.
  • No react to limited data: US APR TRADE GAP -$87.1B VS MAR -$107.7B. Unlikely to see react to Consumer credit ($35B est) at 1500ET.
  • No react to Tsy Sec Yellen testimony to Committee on Finance, U.S. Senate, nothing really new as the former Fed chair touches upon supply constraints, chip shortages underpinning inflation.
  • That said -- starting to see pick-up in stories suggesting global inflation may be topping out, Bbg citing semiconductor prices, spot rate for shipping containers and fertilizer prices plateauing.
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