MNI China Daily Summary: Wednesday, April 17

MNI BRIEF: China To Quicken Project Construction - NDRC

MNI BRIEF:ECB Unifies Interest On Non-Monetary Policy Deposits

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

MNI: PBOC Sets Yuan Parity Lower At 7.1025 Weds; -5.39% Y/Y

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS WEDS

VIEW CHANGE: BNP looks for first cut in August rather than June

March Final HICP Data Suggests “Easter Effects” Limited To Airfares

MNI: US MBA: MARKET COMPOSITE +3.3% SA THRU APR 12 WK

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

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

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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NZGBS: Weaker As S&P Warns About Current Account Deficit

BONDS

NZGBs close 16-17bp weaker with bond rating comments from S&P regarding the current account deficit weighing on the market going into the bell. NZ/US and NZ/AU 10-year yield differentials pushed respectively 5bp and 12bp wider.

  • Q4 Current Account data released today showed a worse-than-expected deterioration with a -8.9% of GDP print (8.5% expected).
  • BBG ran with comments from S&P that it would need to see the current account deficit narrow over the next 12 to 18 months otherwise there would be “increased pressure on the AA+ rating.”
  • Swaps are 11-19bp cheaper, implying wider short-end and tighter long-end, with the 2s10s curve 8bp flatter.
  • RBNZ dated OIS firms 5-22bp. April meeting pricing closed with 25bp of tightening. Terminal OCR expectations closed at 5.36%.
  • Locally, Q4 GDP is slated for release tomorrow. After remaining surprisingly resilient in the face of aggressive tightening, recent data has become patchier.
  • With BBG consensus expecting -0.2% Q/Q versus the +0.7% forecast by the RBNZ in its February MPS the local market has potentially another domestic driver to focus on tomorrow.
  • In the interim, the market will likely keep an eye on U.S. Tsys through the release of U.S. PPI and Retail Sales data.
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