MNI China Daily Summary: Wednesday, October 16

MNI: ITALY FINAL HICP +1.2% M/M, +0.7%Y/Y

MNI BRIEF: BOJ's Adachi Sees Conditions For Normalisation

MNI: PBOC Net Injects CNY581.4 Bln via OMO Wednesday

CHINA PBOC CONDUCTS CNY642.4 BLN VIA 7-DAY REVERSE REPOS WEDS

MNI: PBOC Sets Yuan Parity Higher At 7.1191 Weds; +2.66% Y/Y

MNI: US SEP IMPORT PRICES -0.4%

MNI: CANADIAN AUG MANUFACTURING SALES -1.3% MOM

US MBA: REFIS -26% SA; PURCH INDEX -7% SA THRU OCT 11 WK

CANADA: Politics Week: Trudeau Faces More Pressure To Resign

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

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US TSYS: Off Highs But UK CPI Spillover Remains The Main Driver

US TSYS
USGlobalBulletMarketsFixed Income BulletsRegionNorth America
  • Treasuries have pulled away from highs in latest trade, but the broad story remains being dragged higher by Gilts after softer than expected UK CPI inflation along with a more marginal tailwind from lower oil futures.
  • Today’s macro docket is relatively light, led by the final input for core PCE inflation, with greater focus on tomorrow’s retail sales report.
  • The quiet session should keep earnings in focus in the interim, with Morgan Stanley, Abbott Laboratories and Prologis reporting before the open, before Harris’ interview on Fox after the close.
  • Cash yields are 2-2.5bp lower across the curve, with 2s10s at 8.7bps consolidating yesterday’s sizeable flattening but still within ranges over the past month.
  • TYZ4 is 1+ ticks below earlier highs of 112-20 (+ 06) on modest cumulative volumes of 280k.
  • It stopped shy of initial resistance at 112-21 (Oct 9 high) after which lies 113-12 (Sep 3 low), but gains are considered corrective with support seen at 111-22 (Oct 10 low).  
  • Data: MBA mortgage data (0700ET), International prices Sep (0830ET), NY Fed services Oct (0830ET)
  • Bill issuance: US Tsy to sell $64B 17-w bills (1130ET)
  • Politics: VP Harris interview on Fox (1800ET)
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  • Treasuries have pulled away from highs in latest trade, but the broad story remains being dragged higher by Gilts after softer than expected UK CPI inflation along with a more marginal tailwind from lower oil futures.
  • Today’s macro docket is relatively light, led by the final input for core PCE inflation, with greater focus on tomorrow’s retail sales report.
  • The quiet session should keep earnings in focus in the interim, with Morgan Stanley, Abbott Laboratories and Prologis reporting before the open, before Harris’ interview on Fox after the close.
  • Cash yields are 2-2.5bp lower across the curve, with 2s10s at 8.7bps consolidating yesterday’s sizeable flattening but still within ranges over the past month.
  • TYZ4 is 1+ ticks below earlier highs of 112-20 (+ 06) on modest cumulative volumes of 280k.
  • It stopped shy of initial resistance at 112-21 (Oct 9 high) after which lies 113-12 (Sep 3 low), but gains are considered corrective with support seen at 111-22 (Oct 10 low).  
  • Data: MBA mortgage data (0700ET), International prices Sep (0830ET), NY Fed services Oct (0830ET)
  • Bill issuance: US Tsy to sell $64B 17-w bills (1130ET)
  • Politics: VP Harris interview on Fox (1800ET)