MNI China Daily Summary: Wednesday, July 31

MNI BRIEF: BOJ To Raise Further, No Clues on Timing - Ueda

MNI BRIEF: BOJ's FY26 Inflation View Flat; Upside Risk To FY24, 25 Prices

MNI: PBOC Net Injects CNY185.57 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1346 Weds; -1.39% Y/Y

MNI BRIEF: China July PMI Contracts For Third Straight Month

MNI: US MBA: MARKET COMPOSITE -3.9% SA THRU JUL 26 WK

US MBA: REFIS -7% SA; PURCH INDEX -2% SA THRU JULY 26 WK

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

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

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Tsys Off Midday Lows, Squaring Up Ahead Wednesday CPI, FOMC Minutes

US TSYS
  • Tsys remain moderately weaker, short end underperforming with curves unwinding early steeper profiles to flatter (2s10s -.562 at -60.481). Overall volumes still rather modest (TYM3 >930k), are an improvement compared to the last couple sessions with London back on-line.
  • Midday selling partly related to IMF rhetoric over central banks (in)ability to tackle inflation until 2025 - more so than the measured comments by NY Fed Williams during Yahoo Finance interview this morning:
  • "ONE MORE RATE HIKE IS A REASONABLE STARTING PLACE BUT WE WILL BE DRIVEN BY THE DATA" followed by "IF INFLATION COMES DOWN, WE WILL HAVE TO LOWER RATES" Bbg.
  • Treasury futures gradually recovered after the Treasury $40B 3Y note auction (91282CGV7) awarded 3.810% high yield, steady to the WI; 2.59x bid-to-cover vs. 2.33x prior month.
  • Futures continued pare losses in the second half as accounts squared positions ahead Wednesday's CPI and March FOMC minutes release.
  • Fed funds implied hike for May'23 back to 17.9bp, Jun'23 at +19.9bp cumulative at 5.025%, while projected rate cuts later in the year continues to cool: Sep'23 at -7.9bp, November cumulative -24.9bp to 4.577%, Dec'23 42.7bp at 4.417.
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