MNI China Daily Summary: Friday, April 26

MNI BRIEF: China, US Should Strengthen Dialogue, Cooperation

MNI BRIEF: SNB Framework Reform 'Playing With Fire' - Steiner

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

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

MNI: PBOC Sets Yuan Parity Lower At 7.1056 Fri; -4.56% Y/Y

MNI: US MAR PERSONAL INCOME +0.5%; NOM PCE +0.8%

MNI Eurozone Inflation Preview – April 2024

Labour Market Continues Firming Despite Headline Unemployment Uptick

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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Omicron? There's a Vacc For That

US TSYS
Early whipsaw action Wednesday -- Tsys and Bunds reversed late overnight bid (tied to reports suggested that the UK Govt will announce stricter Covid restrictions in face of Omicron variant) promptly sold off on headlines that a third dose Pfizer, Biontech vaccine "neutralized" Omicron variant in lab tests.
  • Not quite the risk-on move some had hoped for: equities sat this one out, trading only modestly higher late in the day (EDZ1 +10.5 at 4695.5), Gold gained 2.0 and WTI crude held around 72.40.
  • Early trade, trading desks reported domestic real$ buying 2-3s, leveraged accts buying 5s after chunky 5Y futures block sales (-16.9k) and sell-stops triggered on first and second downdrafts.
  • Yield curves bear steepened/bonds extending session lows after huge JOLTS openings rate of 11.033M -- near record high, quits rate 2.8%. Equities holding near steady (ESZ1 4685.0 last). Trading desks report domestic and foreign real$ selling 10s and 30s. Central bank bought 2s, contributing to bear steepener.
  • Tsy had firmed off session lows in lead-up to the Tsy auction, drew modest two-way after $36B 10Y note re-open (91282CDJ7) tailed slightly:1.518% high yield vs. 1.515% WI; 2.43x bid-to-cover better than last month's 2.35x but still shy a 2.51x 5-month average.
  • The 2-Yr yield is down 1.6bps at 0.6735%, 5-Yr is down 0.2bps at 1.2532%, 10-Yr is up 2.9bps at 1.5024%, and 30-Yr is up 6.9bps at 1.8716%.
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