US TSYS: Tsys Futures Steady, Focus On PPI Tonight
Dec-12 01:36
- There has been very little happening in Tsys this session, with cash yields trading flat to 0.3bps lower. Futures are trading all within
Wednesday ranges, while volumes are below recent averages. TU is trading -00⅛ at 103-00⅞, while TY is currently trading unchanged at 110-22. - The 2yr is unchanged at 4.153%, while the 10yr is +0.2bps at 4.271%.
- Fed fund futures are currently pricing in 24.7bps of cuts next week, up from 21.5bps prior to CPI. Pricing has just been bought forward slightly, with rate cut pricing cooling 3-5bps further out, currently the market expects a cumulative 83.5bps of cuts through to December 2025.
- Focus tonight will be on PPI numbers with consensus for m/m PPI to remain in line with the prior month at 0.2%.
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CHINA: Central Bank Injects Liquidity in OMO.
Nov-12 01:34
- PBOC issued CNY125.5bn reverse repo at 1.5%.
- Today’s maturities CNY18.3bn
- Net liquidity injection CNY107.2bn.
- The PBOC manages interbank liquidity via the issuance of reverse repo.
NEW ZEALAND: VIEW: Westpac Expects Spending Recovery To Continue
Nov-12 01:27
NZ retail card spending posted a third consecutive monthly rise in October up 0.6% m/m after 0.1% signalling that the sector may be turning around. Total spending rose 0.4% m/m after 0.3% and is now slightly positive on a year ago. Rate cuts since August and tax reductions implemented in July may be supporting the rise in spending. Westpac sees the October data as “encouraging” and that there should be further rises once past and future rate cuts are fully felt.
- Westpac observes that “most mortgages have not come up for refixing yet. In addition, further cuts from the RBNZ are expected over the coming months (we’re forecasting another 50bp cut at the upcoming November meeting).”
- It cautioned that “a couple of factors will restrain the rise in spending over the coming months. First is the softening in the labour market. Unemployment has risen to 4.8%, and we expect it will rise above 5% before the end of this year. In addition, population growth has now turned down as net migration drops back.”
- “Looking more closely at the details of the October spending report, the main category that recorded a rise was the hospitality sector. We’ve also seen the earlier falls in spending on durables (like household furnishings) and apparel flattening off. Those are all discretionary spending areas.”
CHINA PBOC CONDUCTS CNY125.5 BLN VIA 7-DAY REVERSE REPOS TUES
Nov-12 01:27
- CHINA PBOC CONDUCTS CNY125.5 BLN VIA 7-DAY REVERSE REPOS TUES
