MNI China Daily Summary: Thursday, June 20

NORGES BANK HEAD: EITHER HIKE OR EARLIER CUT POSSIBLE

NORGES BANK HEAD SEES POLICY RATE AT 4.5% TO END YEAR

MNI: PBOC Net Injects CNY18 Bln Via OMO Thu; Rates Unchanged

CHINA PBOC CONDUCTS CNY20 BILLION VIA 7-DAY REVERSE REPOS THU

MNI: PBOC Sets Yuan Parity Higher At 7.1192 Thu; -1.93% Y/Y

IFO Upwardly Revises 2024 Growth Forecast by 0.2pp to +0.4% Y/Y

NOK Little Changed Ahead of Norges Bank; Hold In Rates Expected

Intermediate Goods Deflation Continues to Fade in May PPI

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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USD/CNH Back Close To Opening Levels, Early Enthusiasm Tempered

CNH

From earlier lows, USD/CNH has recovered back towards opening levels, last tracking close to 7.2890. This puts us only ~0.10% sub NY closing levels from Friday. Earlier lows were just under 7.2700, with the pair unable to break to fresh downside levels (as this level coincides with lows from last week).

  • Equity sentiment looks more positive, albeit comfortably off earlier highs. The CSI 300 tracking around +2.3% firmer at the break (we were above 5% not long after the open).
  • Local yields are also down a touch of earlier highs, 10yr back to 2.59% (highs were near 2.62%). The US-CH 2yr government bond yield spread sits just below recent highs but isn't suggesting a dramatic weakening in USD/CNH.
  • 1 month risk reversals aren't too far off June lows, last near 0.10. 1 month implied vol is also lower, last near 5.76%, recent highs rest near 7.00%.
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