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

• CHINA SETS YUAN CENTRAL PARITY AT 7.1855 MON VS 7.1845

JGB futures sit slightly higher in the first part of Monday dealing, last near 139.21, -.14 versus settlement levels for June futures. This keeps us firmly within recent ranges. US Tsy futures have had a modestly positive bias in recent dealings (10yr Sep futures up +04), which has likely spill over to JGB futures are the margin.

• JGB yields are firmer across the curve, with the back end outperforming. The 10yr was last at 1.48%, +2.5bps, while the 30yr was up over 3bps to 2.92%. The 2yr was +1bps last and just above 0.77%.
• Earlier we had Q1 GDP revisions, which were positive. Headline growth was revised to flat, versus -0.2%q/q initially reported. Private consumption was revised to a 0.1% gain, versus flat, but business spending was revised down a touch. Inventories were a stronger contributor at +0.6% (initially reported at +0.3%).
• JGB sentiment hasn't been shifted by the data.
• Later on we have the Eco Watchers survey, as well as a 6mth bill sale. 

CFTC positioning shifts were mixed across the major currencies in the week ending June 3, see the table below. For yen, we saw leveraged contracts rise, but this was offset by a contraction in asset manager positioning in the currency. Still, asset managers remain long from an outright standpoint, so too do leveraged players. 

• For EUR we saw little shift in the leveraged space (with an outright short still present), while asset managers added modestly to existing longs.
• GBP small net purchases for both asset managers and leveraged players. Assets managers are almost back to a net long position.
• AUD and NZD saw leveraged names add modestly to existing shorts. There was little net change in asset manager positioning for these currencies. 

Table 1: Weekly Change & Outright Positioning Per Major Currency - CFTC 

Source: Bloomberg Finance L.P. / MNI