MNI China Daily Summary: Monday, May 13

MNI BRIEF: Beijing Reveals 2024 Bond Issuance Plan

MNI BRIEF: BOJ Cuts Scale Of 5-10 Year JGB Buying By JPY50 Bln

RPT-MNI POLICY:BCB Dissenters Feared Reaction Function Misstep

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

MNI: PBOC Sets Yuan Parity Higher At 7.1030 Mon; -4.18% Y/Y

Canada March Building Permits Fall, Q1 Permits Below Average

MNI: CANADIAN MAR BUILDING PERMITS -11.7% MOM

Key data and MPC speakers this week (3/3)

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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Tsys Futures Push higher Ahead Of Weekly Claims & Existing Home Sales

US TSYS
Homepagemarkets-real-timeBulletMarketsFixed Income Bullets

Treasuries marched off early session lows Wednesday, following EGBs lead despite pickup in inflation metrics. There was limited economic data, US mortgage applications rose despite higher rates - seasonally adjusted 3.3% last week after a flag week prior.

  • Jun'24 10Y marked 108-08 session high late into the session following the release of Fed's Beige Book, the contract sold off a touch heading into the close to finished the session at 108-05, as trading gets underway on Thursday we are have opened -01 at 108-04
  • Looking at technical levels: Initial support lays at 107-13+ (Apr 16 low), a break here would open a move to 107-07+ (76.4% of the Oct - Dec ‘23 bull leg). While to the upside resistance holds at 108-25+ (Apr 12 high), a break back above here would open up 109-02/26+ (Apr 8 low / Apr 10 high)
  • Cash Treasury curve bull-flattened on Wednesday, yields were 5-9bps lower. The 2Y yield was -5.5bps at 4.932%, 10Y -8bps to 4.587%, while the 2y10y was -2.512 at -34.1697.
  • Projected rate cut pricing steady vs. late Tuesday levels: May 2024 steady at -2.6% w/ cumulative -0.6bp at 5.322%; June 2024 steady at -16.2% w/ cumulative rate cut -4.7bp at 5.282%. July'24 cumulative at -12.6bp, Sep'24 cumulative -24.9bp.
  • Fed Beige Book: overall economic activity expanded slightly on balance since late February. Ten out of twelve Districts experienced either slight or modest economic growth—up from eight in the previous report, while the other two reported no changes in activity.
  • Looking ahead: Weekly Claims, Exist Home Sales, Fed Speak from Fed Gov Bowman, NY Fed Williams, Atlanta Fed Bostic and Boston Fed Collins.
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Treasuries marched off early session lows Wednesday, following EGBs lead despite pickup in inflation metrics. There was limited economic data, US mortgage applications rose despite higher rates - seasonally adjusted 3.3% last week after a flag week prior.

  • Jun'24 10Y marked 108-08 session high late into the session following the release of Fed's Beige Book, the contract sold off a touch heading into the close to finished the session at 108-05, as trading gets underway on Thursday we are have opened -01 at 108-04
  • Looking at technical levels: Initial support lays at 107-13+ (Apr 16 low), a break here would open a move to 107-07+ (76.4% of the Oct - Dec ‘23 bull leg). While to the upside resistance holds at 108-25+ (Apr 12 high), a break back above here would open up 109-02/26+ (Apr 8 low / Apr 10 high)
  • Cash Treasury curve bull-flattened on Wednesday, yields were 5-9bps lower. The 2Y yield was -5.5bps at 4.932%, 10Y -8bps to 4.587%, while the 2y10y was -2.512 at -34.1697.
  • Projected rate cut pricing steady vs. late Tuesday levels: May 2024 steady at -2.6% w/ cumulative -0.6bp at 5.322%; June 2024 steady at -16.2% w/ cumulative rate cut -4.7bp at 5.282%. July'24 cumulative at -12.6bp, Sep'24 cumulative -24.9bp.
  • Fed Beige Book: overall economic activity expanded slightly on balance since late February. Ten out of twelve Districts experienced either slight or modest economic growth—up from eight in the previous report, while the other two reported no changes in activity.
  • Looking ahead: Weekly Claims, Exist Home Sales, Fed Speak from Fed Gov Bowman, NY Fed Williams, Atlanta Fed Bostic and Boston Fed Collins.