CHINA: INDIA-Wang Talks Up 'Positive Progress' In Beijing-Delhi Relations
(MNI) London - The Chinese Foreign Ministry has issued a statement following a meeting between Foreign Minister Wang Yi and India's National Security Advisor Ajit Doval in Beijing earlier today. The two sides have increased communication over the past 12 months in an effort to maintain the uneasy peace along the disputed Himalayan border between the two countries (the Line of Actual Control, LAC). Statement: "Recently, the bilateral relations have made some positive progress, and the two sides need to further strengthen communication, enhance mutual trust, and work hard to solve practical problems."
- Wang said the two countries should focus on "being development opportunities for each other and not posing a threat to each other" and "being partners rather than competitors". Says the two sides must "properly handle sensitive issues, and maintain peace and tranquillity in the border areas."
- Doval quoted as saying that "The strategic goals of India and China are consistent, and focusing on development is the top priority of each country. The two sides should view bilateral relations from a long-term and strategic perspective, understand and tolerate each other, and expand common interests."
- As Foreign Policy notes, in spite of the 2024 agreement and the subsequent BRICS summit meeting between President Xi Jinping and PM Narendra Modi, "The thaw in India-China ties since last October has not changed the nature or quantum of the two countries’ military deployment on the border." The lack of comprehensive resolution means the risk of escalation remains present.
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JGB TECHS: (M5) Rallies off Lows
- 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: 139.40 @ 15:42 GMT May 23
- 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 and for now, 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 FISCAL: Total Tariff Income Jumping In May As New Rates Hit
Treasury reported a record $16.5B in customs/excise taxes on May 22, reflecting the large increase in tariff rates that went into effect in April.
- Today's report is important because it represents the largest tariff collections of the month which are typically on a due date around the 22nd, when most corporate importers make their payments.
- Thursday's one-day collection is a record, and the month has already set a new record. Tariff revenues have totaled $22.3B so far in May, and are came in at $17.4B in April (after averaging $8.1B/month in 2024).
- For the fiscal year as a whole so far, customs duties have totaled just under $93B, per the Treasury Daily Statement.
US FISCAL: Extraordinary Measures Continue To Dissipate Alongside Treasury Cash
Treasury's latest estimate of the size of "extraordinary measures" available to use "in order to prevent the United States from defaulting on its obligations as Congress deliberate[s] on increasing the debt limit" is down to $67B on May 21 (of an available $299B), vs $82B a week earlier.
- The amount hit the 2nd lowest level since the debt limit impasse started, at $46B, on May 20 (the low was $34B on Feb 24).
- With $476B in cash in the Treasury General Account on May 21, that left the total resources available to Treasury at $543B, the least since April 14 - the day before the annual April 15 tax deadline.
- Treasury Sec Bessent warned Congress earlier this month that "there is a reasonable probability that the federal government's cash and extraordinary measures will be exhausted in August while Congress is scheduled to be in recess. Therefore, I respectfully urge Congress to increase or suspend the debt limit by mid-July".
