MNI China Daily Summary: Tuesday, April 2

MNI BRIEF: China to Incentivise Equipment Upgrades, Trade-Ins

MNI: PBOC Drains Net CNY148 Bln Via OMO Tues; Rates Unchanged

MNI: PBOC Sets Yuan Parity Higher At 7.0957 Tues; -4.95% Y/Y

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

CHINA SETS YUAN CENTRAL PARITY AT 7.0957 TUES VS 7.0938

Services Stickiness To Offset Goods Pullback In State CPI Data

NBP Watch

MNI Projects Soft National CPI M/M Print, But Core Disinflation Slow

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

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

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

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Partial Retracement Of Post-FOMC Bull Steepening

US TSYS
  • Cash Tsys bear flatten in a partial retracement of yesterday’s surge on the FOMC announcement and in particular Powell’s press conference.
  • The net impact remains one of a sizeable bull steepening though, with front-end yields down 12bps since shortly before the policy announcement compared to long-end yields down 4bps. It leaves 2s10s at 27bps, the high of the past couple weeks but within the wide range of moves from early April when it swung from -10bps to above 40bps.
  • With 10Y inflation breakevens rising on the dovish reaction to the presser, real yields have carried the brunt of the decline in yields, currently at 7bps off highs of ~20bps yesterday. That said positive real yields remain rare in the post-pandemic world, only seen consistently this week.
  • 2YY +4.9bps at 2.691%, 5YY +3.6bps at 2.948%, 10YY +2.2bps at 2.956% ad 30YY unchg at 3.035%.
  • TYM2 is down 12 ticks at 118-25 on slightly above average volumes. Support is eyed at the bear trigger of 118-04+ (May 3/4 low) whilst resistance is seen at the 20-day EMA of 119-28.
  • Data: Preliminary Q1 productivity and ULCs (0830ET) should be the pick of today’s data, with eyes ahead on tomorrow’s payrolls.
  • Bill issuance: US Tsy $35B 4W, $30B 8W bill auctions (1130ET)
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BulletMarketsFixed Income BulletsHomepageFOMC Calendar Market News

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