MNI BRIEF: China State Planner To Increase Trade-in Support

MNI China Daily Summary: Thursday, July 25

MNI BRIEF: Japan Govt Keeps Econ View, Cuts Exports

MNI: PBOC Conducts CNY200 Bln via MLF Thurs; Rate Cut

MNI: PBOC Sets Yuan Parity Lower At 7.1321 Thurs; -1.92% Y/Y

CHINA PBOC CONDUCTS CNY235.1 BILLION VIA 7-DAY REVERSE REPOS THURS

Core Goods Pipeline Pressures Pick Up On 3m/3m Basis

Aircraft-Led Durables Collapse Masks Rebound In Core Orders

MNI: BELGIUM JUL BNB BUSINESS SURVEY -12.3

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

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

Richer Following Mixed Results For China’s PMIs & Weak South Korean IP

ASIA RATES
BulletEM BulletEmerging Market NewsHomepage

Asian Government Bonds are richer today after yesterday’s heavy session.

  • China Government Bonds are dealing flat to 4bps richer, with a steepening bias, after today’s official PMI data.
  • Manufacturing stayed in expansion territory in April, printing at 50.4 (50.3 was forecast and 50.8 was the prior outcome). Non-manufacturing or services stayed in expansion territory at 51.2, but this was comfortably below market expectations (52.3 and the prior outcome of 53.0). The composite index is back to 51.7 from 52.7 in March.
  • The local data calendar is quiet until next week when onshore markets return (closed from Wed-Fri this week).
  • Elsewhere, the IMF sees Asia Pacific contributing around 60% to global growth in 2024. It revised up 2024 growth 0.3pp to 4.5% for the region in its economic outlook but still down from 2023’s 5.0%. The upgrade was driven by China, India and Australia.
  • South Korean Sovereign Bonds are 3-6bps richer across maturities after March industrial production printed well below expectations at -3.2% m/m versus +0.5% est. In y/y terms, IP growth was +0.7% (+4.6% forecast). This puts IP momentum back to Q3 2023 levels.
  • The result places downside risks to the bumper Q1 GDP result (initially reported as a 1.3% q/q rise). Overall manufacturing activity fell in quarter, but the GDP report suggested it rose 1.2%.
216 words

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.

Asian Government Bonds are richer today after yesterday’s heavy session.

  • China Government Bonds are dealing flat to 4bps richer, with a steepening bias, after today’s official PMI data.
  • Manufacturing stayed in expansion territory in April, printing at 50.4 (50.3 was forecast and 50.8 was the prior outcome). Non-manufacturing or services stayed in expansion territory at 51.2, but this was comfortably below market expectations (52.3 and the prior outcome of 53.0). The composite index is back to 51.7 from 52.7 in March.
  • The local data calendar is quiet until next week when onshore markets return (closed from Wed-Fri this week).
  • Elsewhere, the IMF sees Asia Pacific contributing around 60% to global growth in 2024. It revised up 2024 growth 0.3pp to 4.5% for the region in its economic outlook but still down from 2023’s 5.0%. The upgrade was driven by China, India and Australia.
  • South Korean Sovereign Bonds are 3-6bps richer across maturities after March industrial production printed well below expectations at -3.2% m/m versus +0.5% est. In y/y terms, IP growth was +0.7% (+4.6% forecast). This puts IP momentum back to Q3 2023 levels.
  • The result places downside risks to the bumper Q1 GDP result (initially reported as a 1.3% q/q rise). Overall manufacturing activity fell in quarter, but the GDP report suggested it rose 1.2%.