HALISTER1: Yuan Bears Testing Water Again, Painful Memory Remains: SocGen

Yuan Bears Testing Water Again, Painful Memory Remains: SocGen

(Bloomberg) -- Investors are tentatively adding back bearish yuan bets after being hurt on such positions earlier in the year, according to Societe Generale’s Asia Pacific head of flow strategy and solutions.
  • Exposure is much smaller this time; yuan depreciation will likely be gradual and market volatility limited for rest of year, Andrew Scott said in interview this week
  • Forward points and implied volatility have collapsed across maturity buckets
  • Investors are expressing risk via call spreads, so they can capture the trend if USD/CNH moves higher but aren’t exposed to move in other direction
  • To partially fund call-spread strategies, clients can sell downside strikes, especially in and around 6.40 & 6.30
  • NOTE: USD/CNH up 0.05% to 6.5617 vs this year’s high at 6.7618 on Jan. 7
  • Offshore yuan rose 3%, from 6.7618 to 6.5604 vs dollar, in space of one week in Jan. as PBOC squeezed bears by mopping up liquidity
  • NOTE: CNH 12-month forward points have fallen from 3,900 in Jan. to 1,629 today; USD/CNH 1-mo. implied vol down from as high as 10.23% in Feb. to 4.19% today
  • NOTE: Yuan Bears Once Compared to Soros in His Prime Now Look Subdued
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER: Barclaycard Poised for Expansion Boost in Staley’s New Model

Barclaycard Poised for Expansion Boost in Staley’s New Model

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
BARC LN (Barclays PLC)

People
Amer Sajed (Barclaycard)
James Staley (Barclays PLC)
Chirantan Barua (Sanford C Bernstein & Co Inc)
Curt Hess (Barclaycard)
John McFarlane (Barclays PLC)

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UUID: 7947283

HALISTER1: INSIDE SINGAPORE: SGD Set for Weekly Gain; MAS Sells 10-Yr Bond

INSIDE SINGAPORE: SGD Set for Weekly Gain; MAS Sells 10-Yr Bond

(Bloomberg) -- Singapore dollar firmer, poised for first weekly gain this month. Central bank to auction S$2.5b ($1.8b) of 10-yr govt bond.
  • HSBC expects “good demand” at auction as it’s the only 10- year issuance this year, according to May 26 note
    • Debt may be issued in range of 2.20-2.25%
    • 10-year govt notes have become more attractive after recent widening in yield spread over 10-year U.S. Treasury notes
  • Yield on Singapore’s 10-yr bond fell 6 bps to 2.11% on May 26
  • Six-month swap-offer rate dropped 4 bps to 1.40408% on May 26
  • USD/SGD -0.1% at 1.3723; fallen 0.7% since May 20, which would be first weekly decline this month; MACD set to cross below signal line
  • Singapore’s property market may be closer to a bottom than Hong Kong, according to LaSalle Investment Management
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283