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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.
CHINA
China's 7-day repo rate last up 4bps at 2.24%, above the prevailing 2.20% from the PBOC but still well below the >3.00% level during the January liquidity episode. Markets will watch the OMOs later closely. The PBBOC last injected funds on Feb 25.
- HSBC looks ahead to PMI data later: "The 7-day repo rate has been inching higher over the past week due to the proximity of the quarter-end period. It is likely that we will see a bit more funding tightness in the first half of this week, before a return to more benign funding conditions in the first half of April and renewed tightening in the middle of April due to the large tax payment season. Bond issuance is set to accelerate from next week onwards and we would be paying close attention to the intensity of the central and local government bond (CGB and LGB) issuances to judge the impact on funding conditions. For now, we take the view that the PBoC will monitor all liquidity events closely and adjust its open market operations accordingly to ensure that the moving average of the 7-day funding rate (DR007) stays within a range of 2.05-2.30%. The official manufacturing PMI data release this week is significant not only because it offers a first glimpse of economic activity for March, but also as it comes after Jan and Feb economic data releases that have generally failed to impress market participants."
- Fig.1: China 7-Day Repo Rate
Source: MNI/Bloomberg
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.
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