MNI China Daily Summary: Tuesday, July 9

CORRECTED-MNI: China H2 Steel Outlook Subdued

MNI BRIEF: Gradual, but Decisive ECB Cuts Needed –Giorgetti

MNI BRIEF: Mexico Inflation 4.98% In June, Above Consensus

MNI BOK WATCH: Slowing Inflation Puts Q4 Cut In Sight

MNI: PBOC Conducts CNY2 Bln Via OMO Tues; Liquidity Unchanged

EZ/UK Bond Supply Calendar: 12/14-Year Bund Auction on Wednesday

EZ/UK T-Bill Calendar: 12-Month BOT Auction On Wednesday

EZ/UK Bond Supply Calendar: 12/14-Year Bund Auction on Wednesday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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MNI's Jean Yung Asks About Fed QT

FED
  • Q: MNI's Jean Yung asks about Fed QT and how markets are reacting to it; and whether reaching the minimum level of necessary reserves is still several years away at the current pace?
  • A: We think it's working fine. We tapered into it and in September we'll go full strength and the markets seems to have accepted it. By all assessments, the markets should be able to absorb this and we expect that'll be the case. So I'd say the plan is broadly on track. It's a little slow to get going but it'll be picking up steam.
  • The process of getting back down to the new equilibrium [for reserves] will take awhile. And that time, it's hard to be precise, but the model would suggest that it could be between 2, 2.5 years. And this is a much faster pace than last time, the balance sheet's much bigger than it was. We look at this carefully and we thought this was a sensible pace, and we have no reason to think it's not.
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