EM ASIA CREDIT: MNI EM Issuance Update - Asia

Germany, France, Spain, Italy and Belgium are due to sell bills this week. We expect issuance to be E22.3bln in first round operations, down from E28.1bln last week.

• This morning, Germany will look to sell E1.5bln of the 11-month Jul 15, 2026 Bubill.
• This afternoon, France will look to issue up to E7.2bln of 13/18/26/52-week BTFs: E2.6-3.0bln of the 13-week Nov 12, 2025 BTF, E0.0-0.4bln of the 18-week Dec 17, 2025 BTF, E1.4-1.8bln of the 26-week Feb 11, 2026 BTF and E1.6-2.0bln of the new 52-week Aug 12, 2026 BTF.
• Tomorrow morning, Spain will look to come to the market with the 3-month Nov 7, 2025 letras and the 9-month May 8, 2026 letras. The auction size will be announced today.
• Also tomorrow morning, Italy  will look to sell E8bln of the new 12-month Aug 14, 2026 BOT.
• Finally tomorrow, Belgium will look to issue E2.8-3.2bln of the Nov 13, 2025 TC.

We look at potential tweaks to the RBA’s communication methos -- on MNI Policy MainWire now, for more details please contact sales@marketnews.com

• The July release over the weekend for China's inflation data confirmed more of the same as deflationary pressures remain.  China's July CPI release was 0.0%, from 0.1% in June.  The July PPI release was -3.6%, in line with June's -3.6%. PPI has not produced a positive print since September 2022.  The PBOC (People's Bank of China) has set a CPI (Consumer Price Index) inflation target of around 2% for 2025. This target was reaffirmed at the National People's Congress in early March, alongside a real GDP growth target of around 5%. Whilst the 1Q and 2Q GDP remain on target (2Q GDP printed at +5.2%) CPI continues to lag.  The government is ramping up the 'anti-involution' approach aimed at curbing the price wars. It is currently viewed as one of the critical issues for the economy. The campaign is aimed at curbing intense, often unproductive, competition, particularly in industries with overcapacity, leading to price wars and declining profits. The campaign seeks to promote healthier competition, improve product quality, and enhance overall economic stability.  (source MNI)
• China's domestic consumption market is poised to continue its growth momentum in the second half of the year, fueled by continuous implementation of stimulus policies and residents' rising demand for high-end consumer goods, industry experts said.  Consumption's key role as a driver of economic growth has long been a key focus of China's top leadership. In the Government Work Report delivered in March, boosting consumption was listed as a top priority among this year's major tasks.  Consumer spending has played an increasingly pivotal role in China's economy. During a meeting of the Central Commission for Financial and Economic Affairs in February last year that was presided over by President Xi Jinping, he stressed that efforts should be made to encourage and guide a new round of large-scale equipment upgrading and consumer goods trade-in.  (source China Daily)
• China's major bourses were all higher with the onshore outperforming. The Hang Seng was up a mere +0.19% whilst the CSI 300 rose +0.58%, the Shanghai Composite up +0.51% and the Shenzhen Comp up +1.40%.
• Yuan Reference Rate at 7.1405 Per USD; Estimate 7.1869
• The CGB 10yr is up +1.5bp today at 1.71%