MNI China Daily Summary: Monday, July 1

MNI BRIEF: PBOC To Borrow CGBs In Response To Market Situation

MNI BRIEF: Caixin June Manufacturing PMI Hits Three-year High

MNI: PBOC Net Drains CNY48 Bln Via OMO Mon; Rates Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS MON

Services Inflation Potentially A Touch Softer; Food Prices Jump

Nominal Wage Growth Moderates In April, But Real Wages Remain Positive

MNI Projects 2.2-2.3% Y/Y National CPI, Core CPI Around 2.9%

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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Next Support In Futures Holds On First Test

GILTS
Bank Of England (BOE) Market NewsHomepageBond Market NewsBulletMarketsFixed Income Bullets

Little respite for gilts, with continued pressure for European bonds (driven by EU/French politics) still in the driving seat.

  • Bears have tested next support in futures (96.26) but failed to meaningfully break below (low of 96.25 seen so far). The contract last trades at 96.37, -49.
  • Cash gilt yields are 2.5-5.0bp higher, with the curve steepening alongside global peers.
  • 2s10s moves back towards ’24 steeps, while 5s30s sticks comfortably within the recent range.
  • Gilts are wider vs. U.S. Tsys across the curve but outperform OATs.
  • SONIA futures trade off session lows, last flat to -6.0.
  • GBP800mn of short-dated gilt sales from the BoE’s APF are due this afternoon. This could have some short-term impact, but shouldn’t be a major theme setter for gilts, especially with the monthly labour market report due tomorrow.
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Little respite for gilts, with continued pressure for European bonds (driven by EU/French politics) still in the driving seat.

  • Bears have tested next support in futures (96.26) but failed to meaningfully break below (low of 96.25 seen so far). The contract last trades at 96.37, -49.
  • Cash gilt yields are 2.5-5.0bp higher, with the curve steepening alongside global peers.
  • 2s10s moves back towards ’24 steeps, while 5s30s sticks comfortably within the recent range.
  • Gilts are wider vs. U.S. Tsys across the curve but outperform OATs.
  • SONIA futures trade off session lows, last flat to -6.0.
  • GBP800mn of short-dated gilt sales from the BoE’s APF are due this afternoon. This could have some short-term impact, but shouldn’t be a major theme setter for gilts, especially with the monthly labour market report due tomorrow.