CHINA: No Let Up in Property Declines
Feb-13 02:47
- January property price data showed no let up in the fall of new and used prices, marking almost 3-years of declines.
- New home prices declined -0.37% MoM in January, with Shanghai flat and Beijing down -0.30%.
- New homes have now declined -3.3% YoY, accelerating from the December release of -3.05%
- Used home prices declined -0.54% in January, less than December but down -6.2% YoY, from -6.07 in Dec.
- Whilst overall sentiment remains weak, some major cities saw a jump in sales of used properties. In Shenzhen, transactions reached a 10-month high in January, suggesting that lower prices are finally starting to tempt some buyers back into the market.
- Reports surfaced this week suggest the Shenzhen government is considering a rescue package to prevent a default by China Vanke. According to stories in Reuters and Macao News which report that local authorities are drafting a package worth approximately 80 billion yuan ($11.58 billion) The preliminary plan reportedly includes a CNY20bn share placement to inject immediate liquidity into the developer. This move follows specific central government guidance aimed at preventing further defaults among state-backed developers as the property sector remains under severe strain.
- Investors look ahead to the upcoming party meeting in March for the next steps in policy to support the economy.
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MNI: CHINA DEC EXPORTS +6.6% Y/Y VS MEDIAN +3.0% Y/Y: CUSTOMS
Jan-14 02:44
- CHINA DEC EXPORTS +6.6% Y/Y VS MEDIAN +3.0% Y/Y: CUSTOMS
- CHINA DEC IMPORTS +5.7% Y/Y VS MEDIAN +0.7% Y/Y: CUSTOMS
- CHINA DEC TRADE SURPLUS +$114.1 BLN VS MEDIAN +$114.1 BLN
JGBS AUCTION: 5Y Supply Faces Yields & Curve At Cycle Highs
Jan-14 02:44
The Japanese Ministry of Finance (MoF) will today sell Y2.5tn of 5-Year JGBs. MoF last sold 5-year debt on 9 December 2025.
- Yields on today’s offering are hovering near cycle highs, 20-25bps above last month’s issuance levels.
- Moreover, the 2s/5s curve is holding near its cycle high of 44bps, approximately 5bps steeper than last month and at its steepest since late 2009.
- Amid weak demand at recent auctions, today’s results will be closely watched for signs of continued weakness.
- Results are due at 0335 GMT / 1235 JST.
Bloomberg Finance LP
JGBS AUCTION: PREVIEW: 5-Year JGB Auction
Jan-14 02:40
The Japanese Ministry of Finance (MoF) will today sell Y2.5tn of 5-Year JGBs. MoF last sold 5-year debt on 9 December 2025, with the auction drawing cover of 3.1676x at an average yield of 1.435%, an average price of 99.84, a high yield of 1.444%, a low price of 99.80, with 37.7565% of bids allotted at the high yield.
- Last month’s 5-year bond auction delivered lacklustre demand signals. The low price was slightly below expectations at 99.81, the bid-to-cover ratio fell to 3.1676x from 3.3258x, and the tail widened to 0.04 from 0.03.
- The result contrasted with the strong results seen at last month’s 10-year and 30-year auctions but was consistent with last month’s poor 2-year auction.
- This month’s 10-year bond sale, however, also delivered weakish results, with the low price failing to meet expectations at 100.00, according to the Bloomberg dealer poll. Moreover, the cover ratio decreased to 3.3037x from 3.5913x and the tail lengthened to 0.05 from 0.04.
- Results are due at 0335 GMT / 1235 JST.
