CHINA: 10-Yr Bond Future Back Above Key EMA (amended)
* As anticipated with this morning's OMO seeing no new O/N allocated, the 2-YR NDIRS remains stati...
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CHINA: Key Local News Highlights - Ties with Russia Gain Momentum
Below is a selection of key recent onshore media highlights for China ICYMI :
Overseas Investment (China Daily): Overseas investment regulation acclaimed
https://www.chinadaily.com.cn/a/202606/01/WS6a1da464a310d6866eb4bdd1.html
China Russia Relations (China Daily): Sino-Russian bilateral economic, trade ties gaining momentum
https://www.chinadaily.com.cn/a/202606/02/WS6a1e2da3a310d6866eb4bea8.html
Security (XInhua): China's security vision crucial in reducing confrontation, promoting dialogue-based security cooperation
https://english.news.cn/20260601/57878aace338468d924e0cdae80872d2/c.html
Education Investment (Xinhua): Beyond bricks and mortar, China pivots to more people-centered investment
https://english.news.cn/20260601/8154e39e3ab94cc0bae710aff9e8c82c/c.html
Urban Renewal (Yicai): China’s First Urban Renewal Plan Points to USD2.2 Trillion of Spending Through 2030, Report Says
IPOs (China Securities Daily): Capital market fosters innovation ecosystem and makes listing channels smoother for high-quality enterprises
https://www.cs.com.cn/xwzx/01/2026/06/02/detail_2026060210015434.html
SK China Relations (Global Times): SK’s robust export growth shows vast co-op opportunities in China
https://www.globaltimes.cn/page/202606/1362519.shtml
US Chip Blockade (Global Times): Higher walls, stronger innovation: What US chip blockade brings to China
https://www.globaltimes.cn/page/202606/1362526.shtml
MNI China Press Digest Jun 2: Fiscal, Bond Sales, Housing
JGBS AUCTION: Solid To Mixed Demand Metrics For 10Y Auction
The 10-year JGB auction delivered mixed to solid results, with the low price beating expectations at 98.01, according to the Bloomberg dealer poll. However, the cover ratio decreased to 3.5200x from 3.9039x and the tail lengthened to 0.05 from 0.03.
- This performance came with an outright yield that was ~15bps above the level of last month's auction but ~15bps below its cycle high.
- The 2s/10s yield curve was also ~15bps steeper last month's auction and hovering just below its cycle high. Moreover, the 7s/10s curve, a measure of value between JB1 futures and the 10-year, was steeper than last month and sat near the top of the past year's range.
- In early afternoon Tokyo trading, JGB futures dealing firmer with the cash 10-year yield 2-3bps lower.
JGBS AUCTION: 10-Year JGB Auction Results
The Japanese Ministry of Finance (MoF) sells Y1,983.9bn 10-Year JGBs:
- Average Yield: 2.649% (prev. 2.540%)
- Average Price: 98.06 (prev. 98.89)
- High Yield: 2.656% (prev. 2.544%)
- Low price: 98.01 (prev. 98.86)
- % Allotted At High Yield: 88.2646% (prev. 27.5558%)
- Bid/Cover: 3.5200x (prev. 3.9039x)
