CHINA RATES: MNI: China Repo Rates Fall On Friday

In Tokyo morning trade, JGB futures are stronger, +5 compared to settlement levels, after reversing the overnight downtick.

• Today, the local calendar has a light data schedule.
• BoJ Board Member Tamura in Aomori says: Accommodative Financial Conditions To Stay; BOJ Took First Step Toward Monetary Policy 'Normalization'; BOJ Will Slowly and Steadily Normalize Monetary Policy; Side Effects of Monetary Easing Will Likely Remain; and Expect Positive Cycle of Wages, Prices to Continue.
• BoJ Governor Ueda is also scheduled to appear in Parliament from 10:47 am local time – BBG.
• Cash JGBs are dealing slightly mixed, with yield movements bounded by +0.2bp to -0.7bp. The benchmark 10-year yield is 0.1bp higher at 0.74% versus the YTD high of 0.801%.
• The 40-year yield is little changed ahead of supply.
• The swaps curve has twist-steepened, pivoting at the 20s, with rates 3bps lower to 2bps higher. Swap spreads are mixed.

• CHINA PBOC INJECTS CNY250 BILLION VIA 7-DAY REVERSE REPOS WEDS

The USD/CNY fixing was set at 7.0946, versus a Bloomberg consensus estimate of 7.2222.

• Today's fixing saw a -1276pip error term in USD/CNY terms. This is fresh wides on the fixing error back to early Nov last year.
• The actual fixing was very close to yesterday's outcome (7.0943).
• USD/CNH is a touch higher in the first part of trade, in line with firmer USD index levels, but overall moves are modest. The pair last near 7.2500, with little reaction to the fixing so far.