In today’s briefing:
- Are Mexico’s Local Bonds Cheap?
- China Loan Prime Rate Unchanged as Regulators Turn the Attention to Supporting Supply Chains
- CX Daily: How Kazakhstan Distances Itself From Russia to Pursue Domestic Reforms
- Shorts Piling into Oil & Gas, Specialty Stores and Trucks/Farm Machinery
- Earnings: are positive surprises over?
Are Mexico’s Local Bonds Cheap?
- Rates in emerging countries are rising with the US, but they are outperforming. As an example, Mexico’s spread to the US remains high but is off the peak.
- Inflationary pressures, including elevated inflation expectations and breakeven, argue for a high spread. On the other hand, aggressive rate hikes are priced and real rates are already high.
- With inflation likely to peak soon, I find rates in Mexico high enough to receive and have a trade recommendation accordingly, even though there are arguments on both sides.
China Loan Prime Rate Unchanged as Regulators Turn the Attention to Supporting Supply Chains
- LPR remains unchanged at at 3.7% for 1-yr LPR and 4.6% for 5-yr LPR.
- The PBOC and CBIRC issue statements on supporting the real economy in emergency symposium.
- The newly formed State Council Logistics Leading Group , called to rectify excessive prevention and control measures that block logistics operations, and ensure a smooth transportation network.
CX Daily: How Kazakhstan Distances Itself From Russia to Pursue Domestic Reforms
In Depth: How Kazakhstan distances itself from Russia to pursue domestic reforms
Five things to know about China’s private pension system
Shanghai pledges stricter oversight of pandemic supplies after complaints of rotten food
Shorts Piling into Oil & Gas, Specialty Stores and Trucks/Farm Machinery
- The market value of short interest decreased by -4.2% ($-34.9) billion over the past 30 days. Net new active shorting decreased by $15.5 bn. See report for details.
- The strongest short activity was seen in Oil & Gas, Specialty Stores, Trucks & Farming Machinery and Investment Managers.
- The most short covering took place in Cable TV, IT Services, Software and Internet Retail.
Earnings: are positive surprises over?
- The rebound in the second half of March it has already been forgotten by the market. The principal equity indices are going down again, and the bond yields have reached very high level.
- BofA: the long Treasury Trade – Recently the Bank of America strategist team posted a note in which they suggest to go long on U.S. Treasury.
- Earnings: the moment of truth? – In the last few weeks there have been a lot of earnings revisions, mostly to the down side.
Before it’s here, it’s on Smartkarma
