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MNI: PBOC Drains Net CNY434 Bln Mon; Rates Unchanged

CHINA PBOC INJECTS CNY67 BILLION VIA 7-DAY REVERSE REPOS MON

MNI: China CFETS Yuan Index Down 0.36% In Week of Nov 30

Australia Oct Housing New Loan Commitments +5.4%

MNI: AUSTRALIA Q3 BIZ INDICATORS INVENTORIES +1.2%

Light China Docket This Week

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

MNI BRIEF:Macklem-Fiscal Policy Turning Unhelpful On CPI Fight

MNI BRIEF: Stabilizing Prices Helps BOC Turn Neutral-Freeland

Off Lows, GGBs Marginally Tighter After DBRS Upgrade

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Bunds find a base alongside U.S. Tsys as the BoJ-driven weakness seen in Asia-Pac hours moderates a touch.

  • That leaves Bund futures -20, while German cash benchmarks are 0.5bp richer to 1.5bp cheaper, twist steepening.
  • Bears couldn’t force a challenge of initial technical support in Bund futures (130.35, the Sep 7 low).
  • Most other EGB curves twist/bear steepen a little.
  • Core/semi-core paper little changed when it comes to spreads vs. Bunds.
  • Greek paper is the outperformer, although only marginally so, as 10-Year GGBs tighten by ~1.5bp vs. Bunds post-Greece’s (widely expected) IG status attainment at DBRS Morningstar on Friday. A reminder that achievement isn’t a gamechanger for GGBs on the index inclusion front.
  • The regional docket is limited today.
  • Eurozone commission marked down Eurozone GDP projections, while lowering its CPI forecast for ’23 & lifting it’s CPI outlook for ’24.
  • While there is nothing formally slated on the EGB issuance front on Monday, we remain on the lookout for details of a possible EU syndication after the recent RFP and guidance (some desks look for a new 7-Year line).
  • We also note that the net issuance backdrop is much more supportive for EGBs this week (negative net supply when accounting for coupons/maturity repayment).
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Bunds find a base alongside U.S. Tsys as the BoJ-driven weakness seen in Asia-Pac hours moderates a touch.

  • That leaves Bund futures -20, while German cash benchmarks are 0.5bp richer to 1.5bp cheaper, twist steepening.
  • Bears couldn’t force a challenge of initial technical support in Bund futures (130.35, the Sep 7 low).
  • Most other EGB curves twist/bear steepen a little.
  • Core/semi-core paper little changed when it comes to spreads vs. Bunds.
  • Greek paper is the outperformer, although only marginally so, as 10-Year GGBs tighten by ~1.5bp vs. Bunds post-Greece’s (widely expected) IG status attainment at DBRS Morningstar on Friday. A reminder that achievement isn’t a gamechanger for GGBs on the index inclusion front.
  • The regional docket is limited today.
  • Eurozone commission marked down Eurozone GDP projections, while lowering its CPI forecast for ’23 & lifting it’s CPI outlook for ’24.
  • While there is nothing formally slated on the EGB issuance front on Monday, we remain on the lookout for details of a possible EU syndication after the recent RFP and guidance (some desks look for a new 7-Year line).
  • We also note that the net issuance backdrop is much more supportive for EGBs this week (negative net supply when accounting for coupons/maturity repayment).