USD/CNH Pulls Back To 7.3100, China FM To Visit The US This Week

USD/CNH mostly tracked lower post the Asia close on Monday. The pair got sub 7.3100 late in NY trade, a CNH gain of 0.23%. The pair tracks around 7.3100 in early trade today. USD/CNY ended Monday's session just below 7.3100, while the CNY NEER (J.P. Morgan Index) edged down slightly to 123.57.

• The local data calendar is empty today. Late yesterday headlines from Reuters crossed that the government is set to approve more than 1 trillion yuan ($137bn) in additional government debt issuance today (see this Rtrs link).
• This comes ahead of an expected key financial meeting next week, where the local government debt issue and property market weakness are expected to be discussed (see this BBG link).
• In the equity space, the Golden Dragon index rose 0.92% in Monday US trade, the first gain in a week. To recap, the CSI 300 fell just over 1% in Monday trade to 3474 in index terms. This is fresh lows back to early 2019. Headlines crossed (BBG) that the country's sovereign wealth fund were buying ETFs yesterday.
• US-CH yield differentials pulled away from recent highs as US 10yr yields rejected a break above 5.00%. As we noted yesterday, correlations for CNH are stronger with 10yr US-CH rate differentials rather than the 2yr spread.
• Also note China Foreign Minister Wang will visit the US this week (26-28th of October). The trip is expected to lay the ground work for President Xi to visit the US in November (see this link).