US-CHINA: China Evaluating US Request For Trade Talks
Headlines have crossed from China, where the Commerce Ministry stated it is conducting an assessment of trade talks with the US. BBG noted: "China’s Commerce Ministry said in a Friday statement that it had noted senior US officials repeatedly expressing their willingness to talk to Beijing about tariffs. “The US has recently sent messages to China through relevant parties, hoping to start talks with China,” the ministry added. “China is currently evaluating this.”
- Further comments from the Commerce Ministry still re-iterated calls for the US correct its unilateral tariff measures and wrong practices.
Still, the fact that China is evaluating the potential for talks is being taken as a positive by the market. It will be hoped talks can be agreed upon, which could eventually lead some type of trade agreement and lower tariff levels. It was just yesterday the US Trade Representative Greer stated that official talks with China were yet to begin.
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MNI: AUSTRALIA FEB BUILDING APPROVALS -0.3% M/M, +25.7% Y/Y
- MNI: AUSTRALIA FEB BUILDING APPROVALS -0.3% M/M, +25.7% Y/Y
MNI: AUSTRALIA MAR DWELLING APPROVALS -0.3% M/M
- MNI: AUSTRALIA MAR DWELLING APPROVALS -0.3% M/M
- MNI: AUSTRALIA MAR DWELLING APPROVALS +25.7% Y/Y
AUSSIE BONDS: Smooth Digestion Of May-34 Supply With Increased Demand
The latest round of ACGB May-34 supply sees the weighted average yield print 0.35bps through prevailing mids (per Yieldbroker), extending the recent trend of firm pricing at ACGB auctions.
- Additionally, today’s cover ratio of 3.9125x was significantly higher than the 3.61x seen at the previous auction.
- The strong bid came despite the current yield being 25bps lower than at the previous auction and 30-35bps below the November 2024 high.
- A steeper 3/10 yield curve, the steepest since January 2022, the line's inclusion in the XM basket and the resumption of positive sentiment toward longer-dated global bonds all likely contributed to today’s demand.
- Following the supply, the bond line and XM are little changed in early post-auction trading.
