HALISTER1: Strong China Oct. PMI May Lift 10-Year Yield to 3%: Commerzbank

Strong China Oct. PMI May Lift 10-Year Yield to 3%: Commerzbank

(Bloomberg) -- Chinese central bank will be more comfortable in deleveraging the property sector and curbing asset bubbles after October manufacturing PMI surprised to the upside, Zhou Hao, senior economist at Commerzbank says.
  • More curbs in housing sector and higher funding cost due to PBOC’s tightening may encourage people to send more cash overseas to seek attractive investments: Zhou
  • Forecasts both China one-year IRS and 10-year govt bond yield to move toward 3% this month
    • One-year IRS steady at 2.7588%, while 10-year govt bond yield is little changed at 2.75%
  • China Oct. manufacturing PMI rose to 51.2 vs est. 50.3, highest since July 2014
  • NOTE: China Factory Gauge Climbs to Two-Year High, Services Gain
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Hao Zhou (Commerzbank AG)

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