MNI: Canada Apr-Sept Budget Deficit Widens On Spending

CANADA'S TRUDEAU: I CONTINUE TO HAVE GOOD TALKS WITH TRUMP

MNI BRIEF: Little Macro Difference On Rate Oprions- de Guindos

MNI BRIEF: PBOC Added Outright Repo For Ample Lqdty In Nov

MNI China Daily Summary: Friday, November 29

MNI BRIEF: China Extends U.S. Import Tariff Exemption List

EZ/UK T-Bill Calendar: Germany, Netherlands, France Due Monday

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

CANADA Q3 GDP ANNUALIZED +1.0% AS EXPECTED ON GOVT, CONSUMERS

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

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

USD/CNH Maintains Recent Ranges, 1yr MLF Expected To Be Cut By 10bps Today

CNH

USD/CNH recovered strongly post the FOMC in the NY session, from lows near 7.1500, we got back close to 7.1800 late in NY dealings. However, we didn't breach the 7.1800 handle and make fresh highs. We currently track close to 7.1740, with CNH unchanged for Wednesday's session. USD/CNY spot closed just under 7.1620, while the CNY NEER (J.P. Morgan Index) edged down a little further to 121.16 (-0.06%).

  • The US-CH 2yr government yield spread is close to cyclical highs, near +260bps, in the aftermath of the Fed's hawkish forward guidance. China's 2yr bond yield isn't seeing as much downside as the backend though, with the 10yr yield hitting 2.60% yesterday, which was sub 2022 lows.
  • Today the focus will be on the MLF decision, with a 10bps cut expected (taking the rate to 2.65%), while volumes are projected to be 200bn yuan (125bn prior). We also have the May activity data, which is projected to be softer (see this preview for more details).
  • US Secretary of State Blinken will travel to China this week (June 16-19). There was some concern the trip may not happen after yesterday's phone call with the China Foreign Minister.
  • Bill Gates will also reportedly meet with President Xi on Friday, the latest in a series of high profile US business executives to visit the country.
EM BulletFixed Income BulletsHomepageBulletMarketsEmerging Market NewsForeign Exchange Bullets

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.