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CNY: Bond demand and soft inflation shape outlook – BNY
BNY’s Head of Markets Macro Strategy Bob Savage reports strong demand for Chinese bonds sold in Hong Kong, with yields at decade lows after PBoC liquidity injections ahead of Lunar New Year. At the same time, Chinese CPI and PPI undershot expectations, reinforcing a deflationary backdrop and prompting authorities to pledge more proactive macro policies as domestic demand and industrial profits remain weak. [...]