CHINA: Bond Futures Drop as Data Shows Strength.
Mar-17 03:52By: Jamie Grant
China
- China’s 10YR bond future is down -0.295 today as industrial production and retail sales beat estimates.
- The 10YR future recently traded below the 200-day EMA and today’s sell off sees that trend continue back to levels not seen since late November.
- China’s 2YR bond future’s fall has been much more moderate today, declining just -0.03 to 102.326.
- Trending below the 200-day EMA at the beginning of the month, the 2 YR futures fall has dragged all major technical trends to be downward sloping, indicating a bearish trend.
- Early last week, China’s 10YR government bond trended higher in yield, briefly touching 1.90%, before rallying back to close at 1.84% on Friday.
- The sell-off today sees the CGB10YR at 1.88%.
- For the remainder of the week, the key data release will be the 1 and 5-year Loan Prime Rate, which markets expect no change and them to remain at 3.10% and 3.60% respectively.
