China’s central bank will keep monetary policy flexible

China’s central bank said it’ll keep monetary policy flexible and work to lower funding costs for businesses as the economy still faces strong headwinds. The People’s Bank of China will work to ensure the transmission of monetary policy and use market-focused reform mechanisms to lower the real interest rate for loans, according to a quarterly report. It will keep the yuan basically stable at reasonable, equilibrium levels and maintain a balance between steady growth and risk prevention. (Bloomberg)

Treasuries ended the last day of 2019 lower led by the long-end with the front-end little changed, reflecting expectations for a steady Fed policy rate next year. The 2s10s curve reached the steepest levels since Oct. 9, 2018; 5s30s also widened sharply. Volatility in stocks around the cash open pushed yields to session highs, but other catalysts were scarce and price action was limited in the abbreviated session. (Bloomberg)

IHS Markit releases Indonesia’s December manufacturing purchasing managers’ index. Index rises to 49.5 from48.2 in Nov.; Year ago 51.2. Highest reading since July 2019. Output rises to 50.4 vs 47.9 in Nov. Highest reading since June 2019. (Bloomberg)


Source: Danareksa Sekuritas Debt Research
Photo by Sam Beasley on unsplash