MNI: PBOC Net Drains CNY156.1 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1877 Fri; -1.39% Y/Y

MNI BRIEF: Japan Nov Factory Output Hits 2nd Straight Rise

MNI BRIEF: China May Inject CNY1 Trln To Replenish Big Banks

MNI BRIEF: China Sees Progress On EU EV Deal

MNI: PBOC Net Drains CNY279.8 Bln via OMO Thursday

MNI JAPAN NOV TOKYO CORE CPI +2.2% Y/Y; OCT +1.8%

MNI: GERMANY NOVEMBER FLASH HICP -0.7% M/M (FCST: -0.5%)

MNI: GERMANY NOV CPI +2.2% Y/Y

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

RBI Liquidity Drain Weighs

ASIA RATES
  • INDIA: Long end yields higher in early trade, curve twist steepens. Bonds fell yesterday, snapping a five day winning streak, after the RBI announced it would drain INR 500bn of liquidity from the system via 7-day variable rate reverse repos, the operation is in addition to the INR 3.5tn 14-day reverse repos. This is the first 7-day reverse repo operation in around 18 months and is seen as the first step in normalising monetary policy by some participants and could indicate concerns from the RBI over financial stability despite assurances from RBI Governor Das that the Central Bank were not close to adjusting policy settings. Markets look ahead to state debt auctions later today.
  • SOUTH KOREA: Futures lower in South Korea, while the cash space sees some flattening. The 2-Year auction from the MOF saw bid/cover drop to 2.77 from 3.65 previously despite a 7bps yield premium. Data earlier showed current account surplus slightly narrowed in July due to reduced trade surplus, although exports maintained strong growth.
  • CHINA: The PBOC drained a net CNY 40bn via OMO's today, taking away the last of the additional liquidity injected heading into month-end. Repo rates are higher but remain within recent ranges with the overnight and the 7-day rate inverting again; the overnight rate up 7.95bps at 2.1995% the 7-day rate up 3.73bps at 2.1873%. Bonds futures are lower on track for a fourth day of declines, the 10-Year contract is down 2 ticks at 110.19 as equity markets see another session of gains.
  • INDONESIA: Yields higher, curve flattens. Indonesia's positive Covid-19 test rate has plunged to a record low. The gov't yesterday extended curbs in Java and Bali through Sep 13 and through Sep 20 in other areas but also decided to relax some restrictions. Elsewhere Fitch said that Indonesia's plan to extend the burden sharing arrangement with the central bank will help to finance a larger fiscal deficit through 2022 but increases the risk of weakening macroeconomic stability which could negatively affect ratings.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.