An active Asian session dominated by two contradicting figures. Firstly we had Aussie Business Conditions which surged to its highest level on record and this was followed by a slew of Chinese data. Retail Sales missed expectations coming in at 10.0% vs expectations for a 10.5% number. Industrial Production also missed, printing 6.2% versus expectations of 6.3%, while Fixed-Asset Investments were inline with expectations at 7.3%. Equities were mixed with Tokyo taking its lead from the small gains in the US, whilst the Chinese data weighed on other markets (Nikkei +0.20%, Hang Seng +0.08%, Shanghai Comp -0.30% & S&P/ASX -0.88%). Bond markets were generally softer with US Tens printing fresh lows while Aussie 3yrs gained 5bps on the back of the data. JGBs traded 10 lower at one stage before recovering to finish around unchanged. We also saw China's 10 yr yield trade above 4% for the first time since 2014. Volumes were decent with 90k TYZ7s changing hands. FX markets were quiet with USDJPY trading unchanged on the day.
Key Headlines:
-Australia sold A$150 Mln inflation-linked 2035 bonds at average yield of 0.9732%, bid-to-cover 2.93
-Australia NAB Business Data Conditions +21, previous +14 – Record high; Confidence +8, previous +7
-The PBoC set the yuan mid-point at 6.6399 against the Dollar
-PBoC injected 130 Bln yuan via 7-day reverse repos
-PBoC injected 120 Bln yuan via 14-day reverse repos
-PBoC injected 30 Bln yuan via 63-day reverse repos
-China Industrial Production Data Y/Y +6.2% vs +6.3% exp, prvs +6.6%. YTD Y/Y +6.7% vs +6.7% exp, prvs +6.7%
-China Retail Sales Data Y/Y +10.0% vs +10.5% exp, prvs +10.3%. YTD Y/Y +10.3% vs +10.4% exp, prvs +10.4%
-China Fixed Assets Ex. Rural YTD Y/Y (Oct) +7.3% vs +7.3% exp, pvs +7.5%
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