Source: BBG, MNI
BOJ (BBG): The Bank of Japan underscored its strong commitment to ultra loose monetary policy by offering for the first time to buy an unlimited amount of bonds for three straight days amid a global debt selloff. Monday’s announcement that it would buy 10-year notes on March 29, 30 and 31 came after two offers earlier in the day that failed to lower yields. They touched the defending line of 0.25% for the first time since the bank made the level of its ceiling clear in March last year. The yen, already at its weakest since December 2015, extended losses.
CHINA (BBG - Reported overinght): Shanghai will lock down the city in two phases to conduct a mass testing blitz for Covid-19, as authorities scramble to staunch a spiraling outbreak that’s challenging China’s zero-tolerance approach to the virus like never before. At 5am on Monday, the city of 25 million people locked down areas east of the Huangpu River, which includes its financial district and industrial parks, for four days. The lockdown then shifts to the other half of the city, in the west, for another four days, according to a statement Sunday from the local government. Residents will be barred from leaving their homes, while public transport and car-hailing services will be suspended. Private cars will not be allowed on the roads unless necessary. Tesla Inc. is extending the production pause at its Shanghai plant to Thursday, people familiar with the matter said. Some financial companies rushed to call staff into offices before the lockdown and told workers to prepare to sleep there.
CHINA (BBG): Companies including China’s biggest chip producer and an Apple Inc. supplier are continuing to operate factories in Shanghai during the city’s lockdown by isolating workers and running a closed-off procedure authorized by local authorities, according to people familiar with the matter.The Shanghai government is allowing some manufacturers to run so-called closed loop systems where employees are able to keep working as long as they’re confined to the factory campus and adhere to certain Covid and testing protocols, the people said, asking not to be named discussing internal procedures. Production capacity, however, may still be affected to some degree due to disruptions to logistics and supply chains.
RUSSIA/UKRAINE (RTRS): Russian Foreign Minister Sergei Lavrov said on Monday that a meeting between President Vladimir Putin and his Ukrainian counterpart Volodymyr Zelenskiy should happen once the two sides are closer to agreeing on key issues. Speaking to Serbian media outlets, Lavrov added that any meeting between Putin and Zelenskiy to exchange views on the conflict right now would be counter-productive.
CHINA/RUSSIA (BBG): China rejected speculation it might try to circumvent international sanctions against Russia, while complaining that the measures have damaged normal trade relations with its key diplomatic partner. Foreign Ministry spokesman Wang Wenbin made the remarks Monday in response to a question about a Bloomberg News report that Chinese diplomats are seeking details about complying with sanctions. Wang reiterated that China would take necessary measures to safeguard what it see as its legitimate rights and interests.
UK (BBG): Guidance issued to public sector buying team recommends that public bodies, including Government departments and hospitals, “immediately seek to identify any contracts with Russian and Belarusian companies and, if possible to switch suppliers with minimal disruption, pursue legal routes of cancelling them,” according to a government statement.
UK (BBG): A “stronger surge” in inflation, which is coming down hard on household spending, will slow U.K. growth to 3.5% for 2022, S&P Global Ratings said in a statement. GDP forecast compares with 4.6% that S&P Global Ratings forecast in December
TESLA (BBG): Tesla Inc.’s Elon Musk said in a tweet he has Covid-19 again and is experiencing “almost no symptoms.”The chief executive officer of the electric-car maker and rocket company Space Exploration Technologies Corp. kept his Twitter followers apprised of his first bout with Covid in November 2020. The billionaire missed out on attending SpaceX’s first launch of astronauts to the International Space Station that month.
Core fixed income coming under pressure this morning with gilts underperforming at the 10-year sector of the curve, but Treasuries seeing larger moves in 2-years (with 2-year UTS yields up 10.4bp on the day at writing). The moves seem more driven by momentum rather than any specific headlines today with the BoJ having intervened at least twice to keep 10-year yields in the +/-0.25% target range. This has led to big moves in USDJPY which briefly touched 125 this morning.
Date | GMT/Local | Impact | Flag | Country | Event |
28/03/2022 | 1100/1200 | ![]() | UK | BOE Bailey in Conversation w. Guntram Wolff | |
28/03/2022 | 1230/0830 | ** | ![]() | US | Advance Trade, Advance Business Inventories |
28/03/2022 | 1430/1030 | ** | ![]() | US | Dallas Fed manufacturing survey |
28/03/2022 | 1430/1530 | ![]() | UK | DMO Consultation Gilt Issuance 2022/23 | |
28/03/2022 | 1530/1130 | * | ![]() | US | US Treasury Auction Result for 2 Year Note |
28/03/2022 | 1530/1130 | * | ![]() | US | US Treasury Auction Result for 26 Week Bill |
28/03/2022 | 1700/1300 | * | ![]() | US | US Treasury Auction Result for 5 Year Note |
28/03/2022 | 1700/1300 | * | ![]() | US | US Treasury Auction Result for 13 Week Bill |
29/03/2022 | 0030/1130 | ** | ![]() | AU | Retail Trade |
29/03/2022 | 0600/0800 | ** | ![]() | SE | Retail Sales |
29/03/2022 | 0600/0800 | * | ![]() | DE | GFK Consumer Climate |
29/03/2022 | 0645/0845 | ** | ![]() | FR | Consumer Sentiment |
29/03/2022 | 0700/0900 | ![]() | ES | Spain Retail Sales | |
29/03/2022 | 0830/0930 | ** | ![]() | UK | BOE M4 |
29/03/2022 | 0830/0930 | ** | ![]() | UK | BOE Lending to Individuals |
29/03/2022 | 1230/0830 | * | ![]() | CA | Payroll employment |
29/03/2022 | 1255/0855 | ** | ![]() | US | Redbook Retail Sales Index |
29/03/2022 | 1300/0900 | ** | ![]() | US | S&P Case-Shiller Home Price Index |
29/03/2022 | 1300/0900 | ** | ![]() | US | FHFA Home Price Index |
29/03/2022 | 1300/0900 | ![]() | US | New York Fed's John Williams | |
29/03/2022 | 1400/1000 | *** | ![]() | US | Conference Board Consumer Confidence |
29/03/2022 | 1400/1000 | ** | ![]() | US | JOLTS jobs opening level |
29/03/2022 | 1400/1000 | ** | ![]() | US | JOLTS quits Rate |
29/03/2022 | 1445/1045 | ![]() | US | Philadelphia Fed's Patrick Harker | |
29/03/2022 | 1700/1300 | ** | ![]() | US | US Treasury Auction Result for 7 Year Note |