CHINA: Country Wrap: IPOs Surge in Hong Kong
Jul-07 05:27
- China will replicate 77 pilot measures from the China (Shanghai) Pilot Free Trade Zone (FTZ) in other FTZs and across the country, among efforts to align with high-standard international economic and trade rules and advance high-level institutional opening-up, according to a State Council circular released on Thursday. The measures span seven key areas: services trade, goods trade, digital trade, intellectual property protection, government procurement reform, behind-the-border management systems reform, and risk prevention and control. (source China Daily)
- Chinese Premier Li Qiang said Sunday that BRICS countries should strive to become the vanguard in advancing the reform of global governance. Li made the remarks when addressing the plenary session of "Peace and Security and Reform of Global Governance" of the 17th BRICS Summit, calling on the bloc to safeguard world peace and tranquility, and promote the peaceful settlement of disputes. (source Global Times)
- Applications for initial public offerings (IPOs) in Hong Kong had surged to around 200 so far in 2025 as investors are bullish about the Hong Kong bourse in the second half of this year, Paul Chan, financial secretary of the Hong Kong Special Administrative Region government, wrote on his blog on Sunday. Companies from the Middle East and Southeast Asia were among the applicants for IPOs, said Chan. A total of 42 IPOs in the first six months raised over 107 billion Hong Kong dollars (13.63 billion U.S. dollars), landing Hong Kong the top spot in the world in terms of IPO proceeds. (source XINHUA)
- China's major bourses are all down today in a weak start to the week. The Hang Seng is down -0.45%, the CSI 300 down -0.59%, Shanghai Comp down -0.20% and the Shenzhen Comp down -0.15%.
- Yuan Reference Rate at 7.1506 Per USD; Estimate 7.1656
- The CBG 10yr is unchanged at 1.64% today
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Historical bullets
JGB TECHS: (M5) Rallies Off Lows
Jun-06 22:45
- RES 3: 147.74 - High Jan 15 and bull trigger (cont)
- RES 2: 146.53 - High Aug 6
- RES 1: 141.48/142.95 - High May 2 / High Apr 7
- PRICE: 139.19 @ 15:53 GMT Jun 06
- SUP 1: 138.54 - Low May 22
- SUP 2: 136.57 - 1.382 proj of the Jan 28 - Feb 20 - Feb 26 bear leg
- SUP 3: 134.89 - 2.000 proj of the Jan 28 - Feb 20 - Feb 26 bear leg
JGBs have rallied off recent lows, however a bearish theme remains intact following the reversal that started Apr 7. A continuation lower would signal scope for an extension towards 136.57, a Fibonacci projection. On the upside, a reversal higher would instead refocus attention on 142.95, the Apr 7 high. The first important resistance to watch is 141.48, the May 2 high. A break of this level would be viewed as an early bullish signal.
US TSYS/SUPPLY: MNI UST Issuance Deep Dive: June 2025
Jun-06 21:24
We've just published our UST Issuance Deep Dive - Download Full Report Here
- May’s refunding round saw guidance as well as coupon sizes for the current quarter unchanged.
- The August round (Jul 28-30) could prove more compelling, reflecting both pressure at the long end of the Treasury curve as well as a shifting fiscal outlook amid tariff revenues contrasted with impending tax cuts (not to mention the likelihood of approaching the debt limit at around that time if it’s not lifted).
- Future Coupon Upsizing: We’ve seen some expectations that Treasury could lean against some of those trends in the August refunding, with potential signals if not immediate action on adjusting buybacks or even reducing issuance duration in order to reduce pressure on the long end. MNI’s current expectation is that coupon sizes will only be increased in early 2026. We will update in our next Deep Dive at end-June, with our full refunding preview coming in late July.
- Upcoming issuance: June is set to see $315B in nominal Treasury coupon sales, in addition to $23B in 10Y TIPS and $28B FRN for a total of $366B. Sales for the month start in the coming week, on Tuesday June 10 with $58B of 3Y Note, Wednesday June 11 with $39B of 10Y Note, and Thursday June 12 with $22B of 30Y Bond.
- May Auction Results: Against a backdrop of continued steepening pressure for global sovereign curves, May’s coupon auctions saw strong sales at the short-end/belly contrasted with tails at the long-end.
US FISCAL: Extraordinary Treasury Measures Tick Up As Cash Depletes
Jun-06 20:20
Treasury had $84B in "extraordinary measures" available to keep the government financed as of June 4 per a release Friday. That is up from $68B a week earlier though Treasury has exhausted three-quarters of the total initially available ($362B) when the debt limit impasse began in January.
- Combined with a pullback in Treasury cash ($376B), the total resources available to avert an "x-date" in the summer are down to a total $460B, the lowest since April 10 before the annual tax take accelerated.
- There will be another uptick in Treasury cash late next week/early the following week around the mid-June tax date, but this is likely to be the last major uplift before the summer at which point x-date speculation will pick up if Congress hasn't passed a debt limit increase by then.
