HALISTER1: JGBs Fall Across Most of Curve; 40-Yr Trades for 1st Time in May

JGBs Fall Across Most of Curve; 40-Yr Trades for 1st Time in May

(Bloomberg) -- JGBs drop along most of curve in wake of Friday’s decline in U.S. Treasuries and due to pre-auction concession trading for this week’s local debt sales, according to Mitsubishi UFJ Trust & Banking.
  • Yen strength and stock-market weakness have also abated, prompting market players to refrain from buying JGBs for now, says Hideo Suzuki, chief manager of forex and financial products trading at MUFJ Trust, by phone
  • 40-year JGBs “finally traded” today amid falling yield indications and thin liquidity: Tokyo-based Suzuki; sees turnover in this tenor increasing gradually ahead of auction on May 26; NOTE: 10-year JGB sale will be held tomorrow and 30-year auction will be held on May 12
  • 5-year yield up 0.5 bps at -0.230%, 10-year yield up 1.5 bps at -0.105%, 20-year yield up 1 bp at 0.235% and 30-year yield up 0.5 bps at 0.275%; 40-year yield down 10.5 bps to 0.290% from 0.395% on April 27
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Hideo Suzuki (Mitsubishi UFJ Financial Group Inc)

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HALISTER1: CHINA PREVIEW: PPI Decline May Be Slowed by Commodities Rebound

CHINA PREVIEW: PPI Decline May Be Slowed by Commodities Rebound

(Bloomberg) -- China’s producer prices likely fell at a slower pace last month after commodity prices saw its biggest monthly rebound since Dec. 2010, Bloomberg analysis shows.
  • PPI probably fell 3.7% y/y in April after a 4.3% drop in Feb, Bloomberg survey shows; data due 9:30am local time tomorrow; PPI has been negative since early 2012
  • Bloomberg Commodity Index jumped 8.49%, or 6.69 to 85.52 last month; correlation between the index and PPI is at 0.795 in past five years, see trend here
  • CPI rose 2.3% y/y last month, according to median est. in survey, same pace as in March; ests. range from +1.8% to +2.6%; data due same time as PPI
  • Bloomberg’s China food inflation tracker rose 9.15% in April, highest since Jan. 2012, after 7.87% advance in March; CPI and food inflation tracker have a correlation of 0.976 in past five years
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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HALISTER: Ailing Patients Breathe New Vigor Into Industrial Gas Suppliers

Ailing Patients Breathe New Vigor Into Industrial Gas Suppliers

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
AI FP (Air Liquide SA)

People
Benoit Potier (Air Liquide SA)
John Flannery (General Electric Co)
Josef Kaeser (Siemens AG)
Markus Mayer (Baader Bank AG)
Patrick Lambert (Raymond James Financial Inc)

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HALISTER1: INDIA RATINGS: Crescent, Rajesh Projects, Samson Maritime Cut

INDIA RATINGS: Crescent, Rajesh Projects, Samson Maritime Cut

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.
  • To get this story sent to your inbox real-time, run NI INRATINGS , click on Display & Edit, then Set Alert Delivery
DOWNGRADES
  • Crescent Organics
    • Long-term loan facilities cut to BB from BB+ at Crisil
    • Cites deterioration in group’s business-risk profile due to weak demand in domestic mkt, coupled with adverse fluctuations in chemical prices
  • Rajesh Projects
    • LT bank facilities cut to D from BB at Care
    • Cites ongoing delays in debt servicing
  • RG Residency
    • LT bank facilities cut to D from BB(SO) at Care
    • Cites ongoing delays in debt servicing
  • Samson Maritime
    • LT bank facilities cut to A- from A+ at Care
    • Cites significant downward repricing of charter rates in two of its vessels
  • Shree Manibhadra Food
    • LT loan facilities cut to D from BBB- at Crisil
    • Cites group’s continuous over-utilization of bank line, delay in meeting term loan obligation
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
7173129Z IN (Samson Maritime Ltd)
9536474Z IN (Crescent Organics Pvt Ltd)

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HALISTER: Williams-Energy Transfer Deal Already Dead in Wall Street’s Eyes

Williams-Energy Transfer Deal Already Dead in Wall Street’s Eyes

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
WMB US (Williams Cos Inc/The)
ETE US (Energy Transfer Equity LP)

People
A Williams Jr (Williams & Co)
Christopher Sighinolfi (Jefferies LLC)
Darren Horowitz (Raymond James Financial Inc)
Kelcy Warren (Energy Transfer Partners LP)
Robert Willens (Robert Willens LLC)

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UUID: 7947283

HALISTER1: INSIDE ASIA: Region’s Currencies Mixed After U.S., China Data

INSIDE ASIA: Region’s Currencies Mixed After U.S., China Data

(Bloomberg) -- Asian currencies are mixed, partly in response to U.S. data, with Malaysia’s ringgit among gainers and China’s onshore yuan and Japan’s yen declining.
  • U.S. non-farm payrolls rose less-than-expected 160,000 in April, but there were improvements in wage growth, hours worked and U-6 unemployment
    • New York Fed president William Dudley says in NYT interview it remains a “reasonable expectation” for two rate hikes this year
  • China data over weekend showed exports fell 1.8% y/y in April vs. est. 0.0% and 11.5% increase in March; imports dropped 10.9% vs. -4.0% est. and -7.6% in March
  • Some Asian FX seeing temporary relief, partly driven by U.S. NFPs and stable China trade data, Maybank FX analyst Christopher Wong says
    • China raises yuan reference rate for first time since last Tuesday; strengthens by 0.15% to 6.5105
    • USD/CNH sold after yuan fixed at low end of range: traders
    • FX reserves rose to $3.22t in April, highest in three months, vs. median est. $3.20t, data on weekend showed
    • PBOC reaffirms yuan will be kept basically stable and at reasonable level
  • Aussie rises as eight-week federal election campaign begins, with early polls showing mixed results; ruling coalition leads Labor by 51% to 49% in Fairfax/Ipsos poll: AFR
    • A$1.27b worth of AUD/USD options expiring today at 0.7400; buying by large Asian macro account brings option-related sell orders into play, Asia-based FX trader says
    • RBA rate cut last week may encourage traders to unwind carry trades further, rising volatility makes them less attractive, Maybank’s Wong says
  • Yen falls against dollar; Japan’s consumer confidence index seen falling to 40.7 in April from 41.7 in March, according to median est. in Bloomberg survey; data due at 2pm Tokyo time
    • Some BOJ board members believe negative interest-rate policy has created excessive expectations for more easing, according to minutes from March meeting
  • Ringgit gains as oil prices rise on wildfires in Canada and after Saudi Arabia replaces Oil Minister Ali Al-Naimi with close ally of the deputy crown prince
    • 1MDB starts U.S. dollar bondholder outreach, engagement process
  • Taiwan’s dollar snaps three-day drop; data today should show island’s exports dropped 8.3% y/y in April, smallest decline since May: Bloomberg survey
  • Indonesia’s central bank sets lowest fixing in more than five weeks after two-day holiday at end of last week
  • Markets in Philippines closed for presidential election
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Ali Al-Naimi (Kingdom of Saudi Arabia)
Christopher Wong (Malayan Banking Bhd)

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