MNI China Daily Summary: Friday, July 19

MNI BRIEF: China To Boost Consumer Spending, New Industries

MNI BRIEF: China Enhances Fiscal Response To Boost Economy

MNI BRIEF: China To Promote Migrates' Rights, Reform Hukou System

MNI: PBOC Net Injects CNY57 Bln Via OMO Fri; Rates Unchanged

MNI: PBOC Sets Yuan Parity Higher At 7.1315 Fri; -0.52% Y/Y

Intermediate PPI Deflation Continues To Fade in June

MNI: GERMANY JUNE PPI  +0.2 % M/M (+0.1% FCAST, 0.0% PRIOR)

Disappointing data but no market reaction

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

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Under Light Pressure Following GDP

GILTS
Bank Of England (BOE) Market NewsHomepageBond Market NewsBulletMarketsFixed Income Bullets

Firmer-than-expected UK GDP weighs on gilts at the open, futures briefly close yesterday’s opening gap higher (97.84). Cash gilt yields ~2bp higher across the curve.

  • Our technical analyst points to a short-term bearish picture despite the recent gains in the contract. Initial support comes in at the July 4 low (97.32).
  • Conversely bulls need to break yesterday’s high (98.38) to turn focus higher,
  • SONIA futures 0.5-2.5bp lower, below pre-gilt open levels but off early lows.
  • While we don’t see today's GDP release as a meaningful market mover, we have noted overall activity data is holding up much better than consensus/BoE exp.
  • The domestic economic data calendar is empty for the remainder of the day, leaving focus on the U.S. CPI release.
  • June’s CPI data provides the next meaningful domestic release of note, scheduled for Wednesday.
  • On the supply front, GBP3.75bn of 4.00% Oct-31 supply is due today.
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Firmer-than-expected UK GDP weighs on gilts at the open, futures briefly close yesterday’s opening gap higher (97.84). Cash gilt yields ~2bp higher across the curve.

  • Our technical analyst points to a short-term bearish picture despite the recent gains in the contract. Initial support comes in at the July 4 low (97.32).
  • Conversely bulls need to break yesterday’s high (98.38) to turn focus higher,
  • SONIA futures 0.5-2.5bp lower, below pre-gilt open levels but off early lows.
  • While we don’t see today's GDP release as a meaningful market mover, we have noted overall activity data is holding up much better than consensus/BoE exp.
  • The domestic economic data calendar is empty for the remainder of the day, leaving focus on the U.S. CPI release.
  • June’s CPI data provides the next meaningful domestic release of note, scheduled for Wednesday.
  • On the supply front, GBP3.75bn of 4.00% Oct-31 supply is due today.