CHINA PRESS: China To Attract More Foreign R&D Activities

US cash trading has been limited so far today ahead of the FED with yield moves muted.  The 10-Yr US bond future is down just 1 tick at 111-31+ with volumes extremely low.  

• The 2-Yr is down -0.2bps at 3.676%
• The 5-Yr is down -0.2bps at 3.79%
• The 10-Yr is up +0.2bps at 4.204%
• The 30-Yr is up +0.4bps at 4847%

No change is consensus for the FED A but if that no change is on account of oil inflation is likely to see bond yields on the move higher again as markets.  

US Data Calendar (prior, estimate).  

• MBA Mortgage Applications
• PPI Final Demand MoM (0.5%, 0.3%), YoY (2.9%, 3.0%)
• PPI Ex Food and Energy MoM (0.8%, 0.3%), YoY (3.6%, 3.7%)
• Factory Orders (-0.7%, 0.1%), Durable Goods Orders (0.0%, 0.0%)
• UST  $69B 17W bill auction
• FOMC rate announcement
• Total Net TIC Flows ($44.9B prior), Net Long-term TIC Flows ($28.0B prior)

Repo rates have  moved lower again following the auction of six month repo yesterday and the announcement of the upcoming 21-day and 3-month MOF Deposits.  

•  The PBOC issued CNY20.5bn of 7-day reverse repo at 1.4% during this morning's operations.
• Today's maturities CNY26.5bn of 7-day reverse repo
• Net liquidity withdraws of CNY6bn.
• The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
• The CFETS Pledged Repo Deposit Institutions 7 Day Weighted is at 1.40%, from prior close of 1.43%.
• The China overnight interbank repo rate is at 1.30%, from the prior close of 1.30%.
• The China 7-day interbank repo rate is at 1.40%, from the prior close of 1.43%.

• CHINA PBOC CONDUCTS CNY20.5 BLN VIA 7-DAY REVERSE REPO WEDS