MNI China Press Digest July 26: Deposit Rates, Fiscal, PBOC

MNI: PBOC Net Injects CNY299.05 Bln via OMO Fri

MNI: PBOC Sets Yuan Parity Lower At 7.1270 Fri; -0.95% Y/Y

CHINA PBOC CONDUCTS CNY358.05 BILLION VIA 7-DAY REVERSE REPOS FRI

CHINA SETS YUAN CENTRAL PARITY AT 7.1270 FRI VS 7.1321

MNI BRIEF: Treasury's Yellen: Inflation Moving To Fed's Target

Japan Tokyo Jul Core CPI +2.2% Y/Y

MNI BRIEF: Japan July Tokyo Core CPI Rises 2.2% Vs. June's 2.1%

MNI JAPAN JULY TOKYO CORE CPI +2.2% Y/Y; JUNE +2.1%

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

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Underperformance Against US Tsys Continues, BoJ Held Bond Buying Steady

JGBS
BulletMarketsFixed Income BulletsHomepage

JGB futures sit off session highs. JBM4 was around 144.09, -.18 in latest dealings. Earlier we got to 144.19 as the BoJ bond buying ops were unchanged, with some market concern we could have seen another reduction (as was the case for Monday's session). The US Tsy futures trend in the 10yr has been very steady today.

  • More broadly we sit within recent ranges for JGB futures, albeit slightly towards the bottom end of ranges for the past month.
  • US-JP yield differentials sit comfortably off April highs. The 10yr spread around +343bps, the 2yr spread around +444bps. Focus will remain on the BoJ outlook and the potential for curbing of bond purchases.
  • On this point, the latest from our Tokyo policy team notes: "The Bank of Japan is concerned the market could interpret any reduction to its Japanese government bond buying programme as an attempt to curb yen weakness and a sign of earlier-than-expected rate hikes, and will hold off plans to shrink its purchases until stability returns to the foreign-exchange market, MNI understands." (see this link for more details).
  • For cash JGB yields, we sit higher in yield terms, the 10yr pushing back up to around 0.94%, while the 20-40yr tenors have seen +2bps gains today. The 10yr swap rate holds above 0.99%.
  • Next week focus is likely to largely rest on Friday's national CPI print.
227 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

JGB futures sit off session highs. JBM4 was around 144.09, -.18 in latest dealings. Earlier we got to 144.19 as the BoJ bond buying ops were unchanged, with some market concern we could have seen another reduction (as was the case for Monday's session). The US Tsy futures trend in the 10yr has been very steady today.

  • More broadly we sit within recent ranges for JGB futures, albeit slightly towards the bottom end of ranges for the past month.
  • US-JP yield differentials sit comfortably off April highs. The 10yr spread around +343bps, the 2yr spread around +444bps. Focus will remain on the BoJ outlook and the potential for curbing of bond purchases.
  • On this point, the latest from our Tokyo policy team notes: "The Bank of Japan is concerned the market could interpret any reduction to its Japanese government bond buying programme as an attempt to curb yen weakness and a sign of earlier-than-expected rate hikes, and will hold off plans to shrink its purchases until stability returns to the foreign-exchange market, MNI understands." (see this link for more details).
  • For cash JGB yields, we sit higher in yield terms, the 10yr pushing back up to around 0.94%, while the 20-40yr tenors have seen +2bps gains today. The 10yr swap rate holds above 0.99%.
  • Next week focus is likely to largely rest on Friday's national CPI print.