MNI China Daily Summary: Thursday, April 22

MNI BRIEF: China To Quicken Resolving Local Debt Risks

RPT-MNI INTERVIEW: ECB's Wunsch Sees At Least Two Cuts By Dec

MNI BRIEF: Brazil CenBank Faces Greater Uncertainty - Campos

MNI: PBOC Conducts CNY2 Bln Via OMO Mon; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS MON

EZ/UK T-Bill Calendar: 3/6-Month ATB Auction on Tuesday

EZ/UK Bond Supply Calendar: EU, FI Synds; IT, DE Auctions Tues

MNI: CANADA MAR INDUSTRIAL PRICES +0.8% MOM; EX-ENERGY +0.8%

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

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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Tsy 2s10s Yield Curve Quietly Bounces off 40Y Lows

US TSY FUTURES
Bit of midmorning ebb-and-flow for Tsys, Bonds extending lows last couple minutes (30YY 3.8356% high) while short end remains off post-data lows. Most striking move is bounce off this morning's 40-year inverted low in 2s10s from -91.943 to -82.034 in the last half hour.
  • Tsys had sold off after this morning's higher than expected Jan Retail Sales (3.0% vs. +1.9% forecasted, ex-auto/gas at +2.6% vs. -0.4% in Dec the strongest print since March 2021) 2s10s extended inversion amid brief speculation over larger rate hikes over extended period from the Fed.
  • Pricing larger hikes is moderating, however, with short end outperforming, while longer period of hikes remains. Fed funds implied hike for Mar'23 steady at 26.8bp, May'23 cumulative steady 47.3bp to 5.052%, Jun'23 steady at 62.1bp to 5.201%, while terminal rate has slipped to 5.25% in Aug'23 from 5.29% this morning.
  • Heavy overall volumes for this time of session, TYH3 >1.16M, rate locks a factor weighing earlier, Amgen 8pt mega-deal size could eclipse the Tsy 20Y bond sale followed by some two-way flow going on - some unwinds post data, etc from props that missed the boat.
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