CNH: USD/CNY Firms, Fixing Error Widens

The USD/CNY fix printed at 7.2038, versus a BBG market consensus of 7.3297. 

• The USD/CNY fix was little higher versus yesterday’s fix  of 7.1980. The fixing error was -1259pips today
• USD/CNH is weaker by -0.227% at 7.3614 in morning’s trading.   

• CHINA SETS YUAN CENTRAL PARITY AT 7.2038 TUES VS 7.1980

In Tokyo morning trade, JGB futures are sharply weaker, -120 compared to settlement levels, hovering near session lows.

• “Japan’s government isn’t considering compiling an extra budget to help mitigate the potential impacts from US tariffs, Minister of Finance Katsunobu Kato said.” (per BBG).
• Jan. deficit was 248.1b yen. Adj. current account surplus 2.32t yen; est. +2.74t yen.
• Cash US tsys are dealing slightly mixed, with a steepening bias, in today's Asia-Pac session.
• US economic data remains light ahead of key releases later this week. Markets are looking ahead to Wednesday's release of the March FOMC minutes, followed by CPI data on Thursday and PPI on Friday.
• Cash JGBs are 5-13bps cheaper, with a steepening bias. The benchmark 10-year yield is 9.9bps higher at 1.215% versus the cycle high of 1.596%.
• Swap rates are 2-8bps, with a steeper curve.
• Today, the local calendar will also see 30-year supply.