EM ASIA CREDIT: Rizal Commercial Banking: Redeems $ AT1

USD/CNH spot got to session highs of 7.2127 a short while ago, up from earlier lows of 7.1913. The move appeared to coincide with the onshore spot open, where USD/CNY moved higher and we were back above the 7.2100 level in latest dealings. There didn't appear any fresh macro catalysts for these moves. 

• The USD/CNY fix was set above the market estimate for the first time since Nov 2024. Still it was set below yesterday's outcome, so this is unlikely to be seen as a an aggressive push back on recent yuan gains.
• In the equity space, the CSI 300 was last little changed, while Hong Kong markets remain in positive territory.
• Headlines crossed earlier from an interview on Fox News with US President Trump. He stated they have the confines of a very strong deal with China, which he hopes they can make.
• For USD/CNH we remain within recent ranges. Highs from last week were just above 7.2500. 

Australian Q1 wages growth was slightly stronger than forecast at 0.9%q/q, versus 0.8% forecast and 0.7% prior., The y/y outcome rose 3.4%, versus 3.2% forecast and 3.2% prior. 

The ABS detail suggested firmer public sector wages were a driver of the overall result: "Annual wage growth ticked up for the first time since the June quarter 2024. The 3.4 per cent increase in wages for the year to the March quarter 2025 was higher than the 3.2 per cent to the December quarter 2024, but lower than the 4.0 per cent at the same time last year."

"Seasonally adjusted private sector annual wage growth was unchanged from the December quarter at 3.3 per cent. Annual public sector wage growth was higher than the private sector at 3.6 per cent in the March quarter 2025, up from 2.9 per cent in the December quarter 2024." See this link. 

• The PBOC issued CNY92 bn of 7-day reverse repo at 1.4% during this morning’s operations.
• Today’s maturities CNY195.5bn
• Net liquidity injected CNY103.5bn.
• The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
• The CFETS Pledged Repo Deposit Institutions 7 Day Weighted is at 1.45%, from yesterday’s close of 1.51%.
• The China overnight interbank repo rate is at 1.40%, from the prior close of 1.50%.
• The China 7-day interbank repo rate is at 1.50%, from the prior close of 1.52%.