EM ASIA CREDIT: Yuexiu Property: New funding agreed

New Zealand April card spending was -0.2m/m for total, after a revised -1.6% fall in March (originally reported as -1.5%). For retail card spending we flat in April, after a -0.8%m/m fall in March. The trend around m/m spending momentum has been mostly negative since the start of the year. The net migration estimate eased to +2480k for March, from +4040 in Feb. Annual net migration was +26531k as at end March. 

• For retail card spending, core retail rose 0.2%m/m after falling 0.8% in March. Durables were up 0.1%, while consumables rose 0.5%, apparel was off 1.9%. Fuel and vehicle related spending were both down over 2%.
• In y/y terms the biggest falls were for fuel and vehicles (ex fuel). Only consumables recorded a decent y/y rise of 3%. 

In post-Tokyo trade, JGB futures closed little changed, -1 compared to settlement levels, after US tsys finished Tuesday's NY session little changed.

• There is little in this report alone to suggest a meaningful gap between CPI and PCE-in other words, the slight downside miss in core CPI doesn't carry a major re-interpretation for PCE via the components. Note that the April core PCE consensus was 0.24% M/M coming into today, and while this may dip slightly, we doubt forecasts will be radically changed (core CPI came in at 0.22% M/M).
• The greenback has weakened, eroding a solid portion of the prior session advance. Amid the continued bid for major equity indices, the US dollar traded in a more typical manner with risk, weakening against most G10 peers.
• "Nippon Life is looking to reduce its holdings of Japanese government bonds and is seeking investment opportunities in other areas, such as sovereign bonds in Europe and Australia, to diversify its portfolio." (per BBG)
• "Nippon Life Insurance Co. is considering investing in lower-rated collateralised loan obligations (CLOs) to increase yields, as it seeks to diversify its investments abroad." (per BBG)
• Today, the local calendar will see PPI data alongside BoJ Rinban Operations covering 1-3-year and 5-25-year JGBs.

In local morning trade, NZGBs are 7-10bps cheaper despite US tsys finishing Tuesday’s NY session little changed. 

• There is little in this report alone to suggest a meaningful gap between CPI and PCE—in other words, the slight downside miss in core CPI doesn't carry a major re-interpretation for PCE via the components. Note that theApril core PCE consensus was 0.24% M/M coming into today, and while this may dip slightly, we doubt forecasts will be radically changed (core CPI came in at 0.22% M/M).
• As for broader trends, the core CPI six-month rate held at 3.0% annualised for a second month in April, moderated from 3.7% in January, although it’s still a fourth consecutive month above the Y/Y.
• The greenback has weakened, eroding a solid portion of the prior session advance. Amid the continued bid for major equity indices, the US dollar traded in a more typical manner with risk, weakening against most G10 peers.
• Swap rates are 10-14bps higher.
• RBNZ dated OIS pricing is little changed across meetings. 25bps of easing is priced for May, with a cumulative 69bps by November 2025.
• On Thursday, the NZ Treasury plans to sell NZ$200mn of the 4.50% May-30 bond, NZ$200mn of the 4.25% May-36 bond and NZ$50mn of the 1.75% May-41 bond.