CHINA PRESS: Hunan To Settle Overdue Corporate Accounts With Special Bonds

Australian Q1 wages growth was slightly stronger than forecast at 0.9%q/q, versus 0.8% forecast and 0.7% prior., The y/y outcome rose 3.4%, versus 3.2% forecast and 3.2% prior. 

The ABS detail suggested firmer public sector wages were a driver of the overall result: "Annual wage growth ticked up for the first time since the June quarter 2024. The 3.4 per cent increase in wages for the year to the March quarter 2025 was higher than the 3.2 per cent to the December quarter 2024, but lower than the 4.0 per cent at the same time last year."

"Seasonally adjusted private sector annual wage growth was unchanged from the December quarter at 3.3 per cent. Annual public sector wage growth was higher than the private sector at 3.6 per cent in the March quarter 2025, up from 2.9 per cent in the December quarter 2024." See this link. 

• The PBOC issued CNY92 bn of 7-day reverse repo at 1.4% during this morning’s operations.
• Today’s maturities CNY195.5bn
• Net liquidity injected CNY103.5bn.
• 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 1.45%, from yesterday’s close of 1.51%.
• The China overnight interbank repo rate is at 1.40%, from the prior close of 1.50%.
• The China 7-day interbank repo rate is at 1.50%, from the prior close of 1.52%.

The USD/CNY fix printed at 7.1956, against a Bloomberg market consensus of 7.1842.

• This result delivered a positive fixing surprise of +114pips. This is the first such surprise since Nov 2024, although the last time we were above +100pips on this metric was in 2022.
• The fixing estimate fell sharply versus yesterday's outcome, with broader USD sentiment softening post Monday's gains. The actual fix was the lowest since Apr 3.
• USD/CNH hasn't reacted much to the fixing outcome, holding near 7.1950 in latest dealings, down slightly for the session.