CNH: USD/CNY Fixing Edges Up, Error Term Notably Wider

The USD/CNY fix printed at 7.1916, versus a BBG market consensus of 7.2088.

• Today's fixing saw a -172pip fixing error, little changed from Friday's outcome. The actual fixing was a fresh low back to early April.
• USD/CNH has drifted a little lower, last near 7.2060, but is lagging US index softness, which is being led by JPY. 

• CHINA SETS YUAN CENTRAL PARITY AT 7.1916 MON VS 7.1938

In Tokyo morning trade, JGB futures are weaker, -14 compared to settlement levels.

• Bloomberg - "The surprisingly sharp drop in first-quarter GDP will complicate the Bank of Japan's efforts to normalize policy. On one hand, a slack economy argues for the central bank to keep policy stimulative. On the other hand, part of the weakness stems from sluggish private consumption - a sign rising living costs continue to make consumers cautious. That suggests the BOJ needs to pare stimulus to avoid stagflation risks."
• BoJ Uchida is due in parliament from 10:27 JT.
• Cash US tsys have twist-steepened in today’s Asia-Pac session as the market continues to digest late Friday news that Moody's Ratings downgraded the US credit score.
• Cash JGBs are flat to 2bps cheaper across benchmarks, with a steeper curve. The benchmark 10-year yield is 0.4bp higher at 1.467% versus the cycle high of 1.596%.
• Swap rates are flat to 1bp lower, with swap spreads tighter.
• Today, the local calendar will see the Tertiary Industry Index alongside 1-year supply.
• The G7 will be holding a meeting from the 20th to the 22nd, there will be attention on any discussion between the US and Japan, particularly if foreign exchange rates are discussed concerning the tariffs.