MNI China Daily Summary: Wednesday, July 3

MNI BRIEF:BOJ Q1 Output Gap Hits 16th Negative Reading In Row

MNI: PBOC Sets Yuan Parity Higher At 7.1312 Weds; -0.34% Y/Y

MNI: PBOC Net Drains CNY248 Bln Via OMO Weds; Rates Unchanged

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

CHINA SETS YUAN CENTRAL PARITY AT 7.1312 WEDS VS 7.1291

Services PMI points to wage bills increasing operating expenses

MNI: UK JUNE FINAL SERVICES PMI 52.1 (FLASH: 51.2); MAY 52.9

MNI: EUROZONE JUNE FINAL SERVICES PMI 52.8 (FLASH: 52.6); MAY 53.2

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

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

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Off Lows, Lagarde Stresses Data-dependent Path For ECB

EGBS
HomepageBond Market NewsEuropean Central Bank (ECB) Market NewsBulletMarketsFixed Income Bullets

EGBs closely tracked short end pricing around ECB President Lagarde’s post-meeting press conference.

  • Bund futures traded to fresh session lows (130.66) on the previously mentioned hawkish newswire headlines, which didn’t provide the full context of an answer given by Lagarde.
  • Markets quickly adjusted for the newswire omissions, recovering from hawkish extremes in the process.
  • Initial support in Bund futures (130.50) remains untouched, with the contract back to 130.90.
  • German yields are 3.5-5.0bp higher across the curve, with the 5- to 7-Year zone leading the weakness.
  • Peripheral spreads also hit fresh session wides on that headline, before retracing back to levels seen around the start of the press conference.
  • The 10-Year BTP-Bund spread remain tethered to 130bp.
  • Subsequent headline flow sees RTRS sources suggesting Holzmann (a known hawk) was the lone hawkish dissenter at today’s decision, arguing for unchanged rates, owing to the increase in inflation projections.
  • Ultimately, today’s ECB decision provided little insight surrounding the future path for monetary policy, as Lagarde underscored the Bank’s data-dependent stance, albeit pointing to the likelihood that the ECB has started the “dialling back” of restriction phase.
183 words

To read the full story

Close

Why 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.

EGBs closely tracked short end pricing around ECB President Lagarde’s post-meeting press conference.

  • Bund futures traded to fresh session lows (130.66) on the previously mentioned hawkish newswire headlines, which didn’t provide the full context of an answer given by Lagarde.
  • Markets quickly adjusted for the newswire omissions, recovering from hawkish extremes in the process.
  • Initial support in Bund futures (130.50) remains untouched, with the contract back to 130.90.
  • German yields are 3.5-5.0bp higher across the curve, with the 5- to 7-Year zone leading the weakness.
  • Peripheral spreads also hit fresh session wides on that headline, before retracing back to levels seen around the start of the press conference.
  • The 10-Year BTP-Bund spread remain tethered to 130bp.
  • Subsequent headline flow sees RTRS sources suggesting Holzmann (a known hawk) was the lone hawkish dissenter at today’s decision, arguing for unchanged rates, owing to the increase in inflation projections.
  • Ultimately, today’s ECB decision provided little insight surrounding the future path for monetary policy, as Lagarde underscored the Bank’s data-dependent stance, albeit pointing to the likelihood that the ECB has started the “dialling back” of restriction phase.