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: BAKER HUGHES US RIG COUNT 613; OIL RIGS 506; GAS RIGS 105

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL APR INDEX 77.2

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

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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### POV, Market Positioning --...>

US EURODLR OPTIONS
US EURODLR OPTIONS: ### POV, Market Positioning -- All Bear'd Up and Nowhere To
Go (in the short-term)
- "Existing" positioning is already bearish. Option and futures players have
been "bear'ed" up for months in anticipation of a hike in June. Chances of a
hike in May FOMC never an issue, but the minutes release on Wednesday will
hopefully flesh out the voting member opinions and choice of "symmetry". 
- That said, bearish minutes or not, accts that are already long downside put
insurance more likely to unwind/take profits on near expirys on down-ticks as
June hike widely expected/futures a lock. MNI PINCH model currently has 99% for
hike at June 13 FOMC; September 26 FOMC 80%; Dec 19 chances fall to 39%.
- The "new" bearish option positioning is targeting rate hikes to be reflected
in 2019-2020 sector of the curve, put buying anticipating lower trade in futures
out the curve as players position for hawkish minutes tomorrow, and further
direction from FOMC when they hike in June.
- Kink in the curve: according to the latest CFTC/COT data, large spec accts
have pared net shorts in Eurodollars by a whopping +237,166 to -3,803,128.
MarketsFixed Income Bullets
MarketsFixed Income Bullets

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