CHINA PRESS: China To Boost Sports Consumption

The BoJ offers to buy a total of Y885bn of JGBs from the market:

• Y100bn worth of JGBs with <1 Year until maturity
• Y325bn worth of JGBs with 1-3 Years until maturity
• Y325bn worth of JGBs with 3-5 Years until maturity
• Y135bn worth of JGBs with 10-25 Years until maturity

At the Tokyo lunch break, JGB futures are weaker, -12 compared to settlement levels.

• (MNI) Japan’s inflation-adjusted real wage, a key gauge of household purchasing power, remained in negative territory for a sixth consecutive month in June but narrowed to -1.3% from May’s 2.6% decline, preliminary data from the Ministry of Health, Labour and Welfare showed Wednesday.
• Bank of Japan Governor Kazuo Ueda said last week he expects real wages to improve toward the end of the year, though it remains difficult to predict when they will turn positive. The sharp wage increases agreed during spring negotiations are gradually being reflected in wage data through July, helping to reduce the negative real wage gap.
• Cash US tsys are flat to 1bp cheaper, with a steepening bias, in today’s Asia-Pac session after yesterday’s twist-flattener.
• Cash JGBs are slightly mixed across benchmarks, with a flattening bias. The benchmark 10-year yield is 0.5bp higher at 1.477% versus the cycle high of 1.616%.
• Swaps have also twist-flattened, with rates1bp higher to2bps lower. Swap spreads are mixed.

Authorities have approved the merger of China Shipbuilding and China Heavy Industry, with analysts expecting more CNY100 billion SOE mergers on the way, Yicai.com reports, noting China Shenhua, a state-owned coal mining and energy company, also recently announced plans to acquire assets held by the State Energy Group. Industrial integration has accelerated since the introduction of new rules in September 2024, allowing for the transformation and upgrading of traditional sectors, an industry insider said.