MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1843 Weds; -1.22% Y/Y

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

EZ/UK Bond Supply Calendar: 4.25% Jul-34 Gilt Due Wednesday

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

MNI: JAPAN NOV CORP GOODS PRICE INDEX +3.7% Y/Y; OCT REV +3.6%

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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JGBS: Subdued Session, Light Local Calendar Again Tomorrow, US CPI Later Today

JGBS
BulletAPACFixed Income BulletsJapanMarkets

JGB futures are holding weaker and mid-range, -10 compared to settlement levels.

  • Outside of the previously outlined PPI data, there hasn't been much by way of domestic drivers to flag.
  • Japan's wholesale inflation accelerated for three straight months as companies continued to pass on rising raw material and labour costs, data showed on Wednesday, keeping the central bank under pressure to raise interest rates again. The data for November comes ahead of the Bank of Japan's two-day policy meeting ending on Dec. 19, when some analysts expect it to raise short-term interest rates from the current 0.25%. (per RTRS)
  • Cash US tsys are ~1bp cheaper in today’s Asia-Pac session ahead of US CPI data later today.
  • Cash JGBs are slightly mixed across benchmarks, with swings bounded by +/- 1bp beyond the 1-year (+2.4bps) and shy of the 40-year (-2.4bps). The benchmark 10-year yield is 0.2bp higher at 1.073% versus the cycle high of 1.108%.
  • The swaps curve has twist-steepened, with rates 1bp lower to 2bps higher. Swap spreads are tighter out to the 10-year and wider beyond.
  • Tomorrow, the local calendar will see Weekly International Investment Flow and Tokyo Avg Office Vacancies data alongside an Auction for Enhanced-Liquidity 5-15.5 YR.
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JGB futures are holding weaker and mid-range, -10 compared to settlement levels.

  • Outside of the previously outlined PPI data, there hasn't been much by way of domestic drivers to flag.
  • Japan's wholesale inflation accelerated for three straight months as companies continued to pass on rising raw material and labour costs, data showed on Wednesday, keeping the central bank under pressure to raise interest rates again. The data for November comes ahead of the Bank of Japan's two-day policy meeting ending on Dec. 19, when some analysts expect it to raise short-term interest rates from the current 0.25%. (per RTRS)
  • Cash US tsys are ~1bp cheaper in today’s Asia-Pac session ahead of US CPI data later today.
  • Cash JGBs are slightly mixed across benchmarks, with swings bounded by +/- 1bp beyond the 1-year (+2.4bps) and shy of the 40-year (-2.4bps). The benchmark 10-year yield is 0.2bp higher at 1.073% versus the cycle high of 1.108%.
  • The swaps curve has twist-steepened, with rates 1bp lower to 2bps higher. Swap spreads are tighter out to the 10-year and wider beyond.
  • Tomorrow, the local calendar will see Weekly International Investment Flow and Tokyo Avg Office Vacancies data alongside an Auction for Enhanced-Liquidity 5-15.5 YR.