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PBoC Likely To Be Cautious On Rate Cuts

ASIA RATES

Asian Government Bonds are dealing mixed in a data/newsflow light Asian session.

  • US markets are shut today for the Juneteenth holiday.
  • China government bonds are dealing mostly cheaper with news flow light.
  • (MNI) The People’s Bank of China and the Ministry of Finance's joint study and promotion of treasury trades in the central bank’s open market operations does not represent quantitative easing, said PBOC Governor Pan Gongsheng at the Lujiazui Forum in Shanghai on Wednesday. (See link)
  • (MNI PBoC Watch) The weak yuan, lender’s narrowed interest margin and the continued fall of long-term CGB yields will drive a steady reference lending rate in June and make the People’s Bank of China more cautious over any potential policy rate cut. (See link)
  • South Korean sovereign bond curve has richened again in a data light session, with yields 2-5bps lower. PPI data for May is due on Friday.

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