Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.LATEST FROM POLICY:
- G10 MarketsG10 Markets
Real-time insight on key fixed income and fx markets.Launch MNI PodcastsFixed Income FI Market AnalysisCentral Bank PreviewsFI PiEurozone/UK Bond Auction CalendarEurozone/UK T-bill Auction CalendarUS Treasury Auction Calendar US$ Credit Supply Pipeline Fixed Income Technical Analysis EGB Issuance, Redemption and Cash Flow Matrix Gilt Week Ahead
- Emerging MarketsEmerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
Real-time insight of oil & gas markets
Reporting on key macro data at the time of release.LATEST FROM DATA:
- MNI ResearchMNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.Global Macro Central Bank PreviewsCentral Bank ReviewsBalance Sheet AnalysisInflation InsightGlobal IssuanceEurozoneUKUSOverviewGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction Calendar
- About Us
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.Free Access
MNI DATA FORECASTS: Fed, BOE To Lead
MNI China Daily Summary: Thursday, January 5
LIQUIDITY: The People's Bank of China (PBOC) on Thursday conducted CNY2 billion via 7-day reverse repos with the rates unchanged at 2.00%. The operation led to a net drain of CNY356 billion after offsetting the maturity of CNY358 billion reverse repos today, according to Wind Information. The operation aims to keep banking system liquidity reasonable and ample, the PBOC said on its website.
RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) decreased to 1.3597% from 1.4552% on Wednesday, Wind Information showed. The overnight repo average decreased to 0.5334% from the previous 0.9156%.
YUAN: The currency strengthened to 6.8731 against the dollar from 6.8825 on Wednesday. The People's Bank of China (PBOC) set the dollar-yuan central parity rate lower at 6.8926 on Thursday, compared with 6.9131 set on Wednesday.
BONDS: The yield on 10-year China Government Bonds was last at 2.8630%, up from Wednesday's close of 2.8550%, according to Wind Information.
STOCKS: The Shanghai Composite Index edged up 1.01% to 3,155.22, while the CSI300 index was up 1.94% to 3,968.58. The Hang Seng Index was up 1.25% to 21,052.17.
FROM THE PRESS: The PBOC will ensure monetary policy is sound, accurate and effective in 2023, following five years of unusual and extraordinary circumstances, according to a recent report posted on the central banks’ social media account. The PBOC said it will use a variety of monetary policy tools to maintain reasonable and sufficient liquidity, keeping money supply and social financing in line with nominal economic growth. Multiple measures will be made to reduce the financing costs for firms, and the yuan exchange rate will be kept stable. Efforts will be made to develop the international use of the yuan, the PBOC said.
China will further reform and open up its foreign exchange sector, according to an article posted on the State Administration of Foreign Exchange (SAFE) social media account. Setting out its plans for 2023, SAFE said it would reform the FX sector to better serve the real economy, maintain stable operation of currency exchange, and would continue stabilising China's foreign exchange reserves. Support would be given to SME’s to optimise FX services and hedge risk, and make better use of cross-border financial service platforms. It was also noted that in 2022 the balance of payments and currency exchange markets had shown resilience and stability.
China’s central bank is expected to expand Pledged Supplementary Lending (PSL) in 2023 as it constitutes the "precise and powerful" monetary policy called for by the Central Economic Work Conference, according to the Securities Daily. Given local government debt and pressure on commercial banks net interest margins, policy banks will play an important role in 2023, and the scale of PSL may increase, according to experts cited by the paper. The PSL has helped policy banks support projects in real estate and new infrastructure. The paper said the targeted lending tool supports weak links in the economy, and can effectively guide long-term interest rates down.
To read the full story
Sign up now for free access to this content.
Please enter your details below and select your areas of interest.
Why Subscribe to
MNI is the leading providerof 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.