EM ASIA CREDIT: Longfor: Fitch cuts, neutral
Jun-27 01:42
(LNGFOR, B1neg/BBneg/BB-neg)
*FITCH DOWNGRADES LONGFOR TO 'BB-'; OUTLOOK NEGATIVE
Fitch downgraded Longfor one notch to BB- overnight. Property sales, as we noted earlier in the month, have remained weak, with for example May contracted sales down 26% YoY. The agency notes that falling sales will strain cash flow and liquidity, and the outlook still remains uncertain. Neutral for spreads - expect sector support post NWD refinancing agreement.
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AUSTRALIA DATA: April CPI A Touch Above Expectations, Limited FX/Bond Reaction
May-28 01:36
The April headline CPI was a touch above expectations at 2.4%y/y (2.3% was forecast). The trimmed mean rose 2.8%y/y (against a 2.7% prior outcome, there is no consensus estimate for this print). More details to follow.
- FX market reaction is limited so far, while futures are around 2bps richer. AUD/USD was last near 0.6450. We did get to 0.6454 post the data outcomes. AUD/NZD has been tracking former, but has been unable to sustain above 1.0850. We have the RBNZ in a little while.
MNI: AUSTRALIA MONTHLY APR CPI 0.2% MM, 2.3% YY
May-28 01:30
- MNI: AUSTRALIA MONTHLY APR CPI 0.2% MM, 2.3% YY
CHINA: Central Bank Injects CNY58.5bn via OMO
May-28 01:25
- The PBOC issued CNY215.5bn of 7-day reverse repo at 1.4% during this morning’s operations.
- Today’s maturities CNY157bn
- Net liquidity injected CNY58.5 bn.
- 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 1.48%, from yesterday’s close of 1.61%.
- The China overnight interbank repo rate is at 1.44%, from the prior close of 1.45%.
- The China 7-day interbank repo rate is at 1.55%, from the prior close of 1.70%.
