© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

BIDEN SAYS PEOPLE'S SAVINGS ARE SECURE

MNI BRIEF: US Bank Deposits Fell USD98B Week Of SVB Collapse

MNI BRIEF: Data Not Justifying ECB Hike Beyond Expectations

EZ/UK Bond Supply Calendar: UK Long APF Sales on Monday

EZ/UK T-Bill Calendar: Germany & France to issue Monday

MNI DATA FORECASTS: EZ Inflation data in focus

MNI BRIEF: Yellen Says Americans' Deposits Are Safe

MNI BRIEF: Italy ESM Ratification Framed In EU’s Fiscal Debate

MNI: Freeland-Banks Well Capitalized, Budget To Focus Stimulus

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
Trending Top 5
Market News Topics

Muted Inflation Pressures Still Suggest Some Room For Easier Financial Conditions

CHINA DATA
Metals bulletEM BulletFixed Income NewsHomepageCommoditiesEnergy BulletsBulletMarketsEmerging Markets NewsForeign Exchange News

China CPI for Feb came in well below expectations, rising just 1.0% y/y, versus 1.9% expected. The detail looked soft (see this link for more details), while the core measure eased back to 0.6% y/y from 1.0% in Jan.

  • The first chart below overlays the core print against the 2yr government bond yield. At face value this suggests downside pressure on yields, but the general theme from the NPC has been fresh stimulus may not materialize in the near term. This was hinted at by the modest growth target and in recent PBoC commentary (see this link). The NDRC stated CPI will within the target of around 3% this year.
  • Today's outcome may reinforce calls that the authorities have some space to ease from an inflation standpoint. The authorities may want to see further prints though, particularly given the March PMIs pointed to rising inflation pressures.

Fig 1: China Core CPI & 2yr Bond Yields

Keep reading...Show less
263 words

To read the full story

Why Subscribe to

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.

China CPI for Feb came in well below expectations, rising just 1.0% y/y, versus 1.9% expected. The detail looked soft (see this link for more details), while the core measure eased back to 0.6% y/y from 1.0% in Jan.

  • The first chart below overlays the core print against the 2yr government bond yield. At face value this suggests downside pressure on yields, but the general theme from the NPC has been fresh stimulus may not materialize in the near term. This was hinted at by the modest growth target and in recent PBoC commentary (see this link). The NDRC stated CPI will within the target of around 3% this year.
  • Today's outcome may reinforce calls that the authorities have some space to ease from an inflation standpoint. The authorities may want to see further prints though, particularly given the March PMIs pointed to rising inflation pressures.

Fig 1: China Core CPI & 2yr Bond Yields

Keep reading...Show less