MNI China Daily Summary: Friday, December 13

MNI BRIEF: PBOC To Curb Any Yuan Overshot : PBOC Zou

MNI: GERMANY OCT EXPORTS -2.8% M/M (VS FCST -2.6%)

CHINA YTD NEW LOANS CNY17.1 TRLN VS MEDIAN CNY17.5 TRLN: PBOC

MNI: PBOC Net Injects CNY14.2 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Higher At 7.1876 Fri; -1.22% Y/Y

MNI: EUROZONE OCT IP +0% M/M, -1.2% Y/Y

MNI: SPAIN NOV HICP +0% M/M, +2.4% Y/Y

MNI: FRANCE NOV HICP -0.1% M/M, +1.7% Y/Y

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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PREVIEW - 40-Year JGB Auction Due

JGBS AUCTION
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The Japanese Ministry of Finance (MoF) will today sell Y700bn of 40-Year JGBs. The MoF last sold 40-year debt on 24 July 2024, the auction drew cover of 2.200x at a high yield of 2.420%, a low price of 94.41, with 98.4126% of bids allotted at the high yield.

  • The late July auction of 40-year JGBs encountered a tepid reception, with the actual high yield overshooting dealer expectations. As per the BBG poll, the anticipated yield was projected at 2.385% versus the realised yield of 2.42%.
  • Adding to the lacklustre response, the cover ratio nudged lower to 2.20x from 2.21x observed in the late May auction.
  • Today’s supply follows mixed demand metrics at September’s 20- and 30-year JGB auctions. 20-year supply showed poor demand metrics, with the low price failing to meet dealer expectations and the auction tail lengthening, whereas the 30-year auction met dealer expectations but with a slightly lower tail.
  • The current 40-year auction yield is approximately 5bps lower than in late July, but the 20/40 yield curve is 15bps steeper and near the steepest for the past 12-months.
  • Results are due at 0435 BST / 1235 JST.
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The Japanese Ministry of Finance (MoF) will today sell Y700bn of 40-Year JGBs. The MoF last sold 40-year debt on 24 July 2024, the auction drew cover of 2.200x at a high yield of 2.420%, a low price of 94.41, with 98.4126% of bids allotted at the high yield.

  • The late July auction of 40-year JGBs encountered a tepid reception, with the actual high yield overshooting dealer expectations. As per the BBG poll, the anticipated yield was projected at 2.385% versus the realised yield of 2.42%.
  • Adding to the lacklustre response, the cover ratio nudged lower to 2.20x from 2.21x observed in the late May auction.
  • Today’s supply follows mixed demand metrics at September’s 20- and 30-year JGB auctions. 20-year supply showed poor demand metrics, with the low price failing to meet dealer expectations and the auction tail lengthening, whereas the 30-year auction met dealer expectations but with a slightly lower tail.
  • The current 40-year auction yield is approximately 5bps lower than in late July, but the 20/40 yield curve is 15bps steeper and near the steepest for the past 12-months.
  • Results are due at 0435 BST / 1235 JST.