CHINA: Central Bank Liquidity Withdrawal Continues.
Dec-05 01:34
- PBOC issued CNY37.3bn of 7-day reverse repo at 1.5%.
- Today’s maturities CNY190.3bn.
- Net liquidity withdrawal today CNY153bn.
- The PBOC maintains liquidity in the interbank market through the issuance of reverse repo.
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AUSSIE BONDS: Cheaper Going Into RBA Decision
Nov-05 01:33
ACGBs (YM -5.0 & XM -2.0) are holding cheaper after dealing in narrow ranges in today’s Sydney session ahead of the RBA Policy Decision. While the cash rate is unanimously expected to remain at 4.35%, the meeting statement will be closely analysed for any shifts in tone.
- (AFR) Bullock says the economy is hot. Chalmers says it’s not. Who is right? (see link)
- Cash ACGBs are 2-5bps cheaper. The AU-US 10-year yield differential at +27bps, near the upper limit of the +/-30bps range maintained since November 2022. A simple regression of the AU-US 10-year yield differential against the AU-US 1Y3M swap differential over the past year suggests that the current 10-year yield differential is about 11bps above fair value, estimated at +18bps.
- Cash US tsys are 1-2bps cheaper in today’s Asia-Pac session, with a flattening bias.
- Swap rates are flat to 2bps higher, with EFPs ~2bp tighter and the 3s10s curve flatter.
- The bills strip pricing is flat to -3.
- RBA-dated OIS pricing is little changed today. However, the pricing for 2025 meetings remains 1-7bps above pre-CPI levels from last Wednesday.
- The market has 2bps of easing by year-end, with an 8% probability assigned to a 25bp rate cut at today’s meeting.
CHINA PBOC CONDUCTS CNY18.3 BLN VIA 7-DAY REVERSE REPOS TUES
Nov-05 01:23
- CHINA PBOC CONDUCTS CNY18.3 BLN VIA 7-DAY REVERSE REPOS TUES
MNI: CHINA SETS YUAN CENTRAL PARITY AT 7.1016 TUES VS 7.1203
Nov-05 01:21
- CHINA SETS YUAN CENTRAL PARITY AT 7.1016 TUES VS 7.1203
