CHINA RATES: MNI: China Repo Rates Fall On Thursday

May-23 01:26

The seven-day deposit reverse repo average across China's interbank market was at 1.8167% on Thursday, lower than the close of 1.8421% on Wednesday, according to Wind Information. The overnight deposit reverse repo average was last at 1.7597%, lower than the previous 1.7791%.

Historical bullets

MNI: CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS TUES

Apr-23 01:25



  • CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS TUES

CNH: USD/CNY Fixing Edges Higher

Apr-23 01:23

The USD/CNY fix printed at 7.1059, versus a Bloomberg consensus of 7.2444.

  • The fixing outcome saw an error term of -1385pips in USD/CNY terms, wider than yesterday's -1292pips outcome, but within recent ranges.
  • The actual fix is the highest since late Feb, but only marginally above yesterday's outcome of 7.1043. The upper limit on daily spot is around 7.2480.
  • USD/CNH is a touch weaker post the fixing, but still above 7.2500 at this stage. Broader USD sentiment is softer, which is likely helping at the margins.

JGBS: Bear-Steepener, Light Local Data Calendar, 2Y Supply Due

Apr-23 00:58

In Tokyo morning trade, JGB futures are little changed compared to settlement levels as overnight strength is unwound.

  • Jibun Bank and S&P Global released April's flash PMIs: Mfg rose to 49.9 from 48.2 in March; Services rose to 54.6 from 54.1 in March; and Composite rose to 52.6 from 51.7 in March.
  • The market’s focus, however, remains on the BoJ Policy Decision on Friday. No policy adjustment is anticipated at the two-day meeting ending on Friday. However, a growing number of economists foresee the possibility of the BoJ implementing another rate hike in October, with many highlighting July as a potential earlier timeframe. The prospect of a weaker yen is cited among the factors that could accelerate this timeline.
  • Nonetheless, it is anticipated that the BoJ will revise its inflation forecast for the current fiscal year to 2.6% and project a 2% price growth for the fiscal year commencing in April 2026. This adjustment reflects optimism regarding wage trends.
  • Ahead of today’s 2-year supply, the cash JGB curve bear-steepened, with yields flat to 2bps higher. The benchmark 10-year yield is slightly lower at 0.884%, just shy of the YTD high of 0.891%.
  • The swaps curve has twist-steepened, pivoting at the 10s, with rates 1bp lower to 4bps higher. Swap spreads are tighter out to the 7-year and wider beyond.