CNH: USD/CNY Fix Edges Down
Apr-17 01:20
The USD/CNY fix printed at 7.2085, versus a BBG market consensus of 7.3121.
- The fixing was lower, in line with broader USD softness and the market's fixing estimate compared to yesterday. The fixing remains within recent ranges though.
- USD/CNH is slightly higher in the first part of Thursday dealings, last near 7.3090. We started the session close to 7.3000. Broader USD sentiment has recovered some ground, the BBDXY up 0.20% after Wednesday's loss. US equity futures have ticked higher.
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CNH: USD/CNY Fixing Back Above 7.1700
Mar-18 01:19
The USD/CNY fix printed at 7.1733, versus a BBG market consensus of 7.2290.
- The fixing is above yesterday's outcome of 7.1688, despite USD weakness for Monday. The market estimate was higher than Monday's though.
- The fixing error was close to unchanged at -557pips.
- This fixing outcome keeps within recent ranges. USD/CNH has risen back above 7.2300 post the fixing outcome, with seemingly little sponsorship from the fixing to higher yuan levels.
CHINA SETS YUAN CENTRAL PARITY AT 7.1733 TUES VS 7.1688
Mar-18 01:15
- CHINA SETS YUAN CENTRAL PARITY AT 7.1733 TUES VS 7.1688
JGBS: Modestly Richer, Focus On Tomorrow’s BoJ & FOMC Decisions
Mar-18 01:00
In Tokyo morning trade, JGB futures are slightly stronger, +5 compared to settlement levels.
- Today, the local calendar will see the Tertiary Industry Index and Tokyo Condominiums for Sale data alongside 1-year note supply.
- Nevertheless, the focus remains on tomorrow’s BoJ Policy Decision. The BoJ is expected to keep its policy rate at 0.50% in March, with no urgency for another hike after its January increase. Strong Shunto wage negotiations saw a 5.5% rise, but broader wage pass-through is needed for sustained inflation above 2%.
- Analysts expect a gradual rate hike to 0.75% by July or September and 1.0% by early 2026, depending on SME wage trends. Market pricing reflects uncertainty, with only half of a 25bps hike factored in for June and a full hike not priced until December. (see MNI BoJ Preview here)
- Cash US tsys are little changed in today’s Asia-Pac session. The focus is on Wednesday’s FOMC decision.
- Cash JGBs are 1-2bps richer across benchmarks. The benchmark 10-year yield is 0.7bps lower at 1.506% versus the cycle high of 1.58%.
- Swap rates are flat to 1bps higher out to the 30-year and -4bps beyond. Swap spreads are wider out to the 30-year.
