CHINA PRESS: Local Goverments Highlight Innovation, Infrastructures
Several provinces have set their 2026 priorities on technological innovation, major project construction and optimising the business environment, the 21st Century Business Herald reported, citing statements from local meetings. Beijing has released an action plan to build an AI innovation hub, aiming to expand the industry to more than CNY1 trillion in scale over the next two years. Henan said it will implement a range of infrastructure projects, including comprehensive transportation systems, new energy systems, modern water networks and urban renewal. Hainan said it would expand the import and supply of high-quality goods and services, with a focus on duty-free shopping for offshore consumers, healthcare and international education.
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US TSYS: Yields Lower as TYH6 Fails Key Tech Resistance
US bond futures have edged higher in the Asia morning session, with the 10-Yr failing to break below a key technical. Opening at 112-18+ TYH6 was near to the 100-day EMA of 1132-15+ but has bounced higher in early trade to be up by +02 to 112-18+
Cash is stronger across the curve with yields -0.2 - -0.6 lower with short and intermediate maturities outperforming.
- The 2-Yr is at 3.556% -0.6bps
- The 5-Yr is at 3.708% -0.5bps
- The 10-Yr is at 4.133% -0.4bps
- The 30-Yr is at 4.791% -0.2bps.
Ahead tonight is a 13 and 26 week bill auction, with the focus being the U$58bn 3-Year auction.
STIR: RBA-Dated OIS Pricing Fully Prices Hike By August 2026
RBA-dated OIS pricing is slightly firmer today, showing tightening across all meetings, with the probability of a 25bp hike rising from 2% tomorrow to 105% by August and 141% by December 2026.
- After today’s move, pricing is 9-40bps firmer across the curve beyond December 2025, than pre-Monthly CPI levels (26 November), led by December 2026.
Figure 1: RBA-Dated OIS – Current Vs. Pre-CPI Monthly
Source: Bloomberg Finance LP / MNI
CHINA: Central Bank Injects CNY14.7bn via OMO
Last week the PBOC withdrew 7-day liquidity, adding 3-month liquidity. The week ahead has (relative to last) a more moderate redemption schedule and likely to see the resumption of some moderate injections.
- The PBOC issued CNY122.3bn of 7-day reverse repo at 1.4% during this morning's operations.
- Today's maturities CNY107.6bn.
- Net liquidity injects CNY14.7bn.
- 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 1.31%, from the prior close of 1.31%.
- The China 7-day interbank repo rate is at 1.40%, from the prior close of 1.40%.
