Daily Report 040517 2017-05-04
Due to yesterday's crude oil EIA weekly data less than expected, coupled with overnight domestic commodities as a whole significantly weakened, overnight PTA price shocks lower. 1709 contracts closed at 4926 yuan / ton, down 72 yuan / ton, or 1.44%. PX China prices fell 4 US dollars / ton, up to 822 US dollars / ton, PTA processing fees increased 39 yuan / ton, to 367 yuan / ton. Yesterday PTA spot price fluctuated within a narrow range. Jiangsu and Zhejiang Polyester sales today as a whole maintains the general. We think the space below is limited, cautious long at low position.
Treasury Bond Futures
Wednesday opened low and dropped; fluctuated at low position. Main contract TF1706 closed at 98.155; dropped 0.06%. Trading volume maintained low; Holding volume slightly dropped. On the domestic side, Beijing and Shanghai lead to raise mortgage interest rate to the benchmark interest rate. We think it is not unreasonable that market interpreted as the directional rate hike, because the and interest rate debt is the bank's two highest quality assets, each other has a reciprocal relationship. Favorable mortgage interest rate abatement is bound to affect interest rate debt attraction and raise interest rate debt yields, which can be interpreted to a certain extent as a modest directional rate hike. Medium-term shock bearish expectations did not change, the market is still facing a slow and sustained blood loss state. After the holiday short-term capital costs are still rising, although the deposit interest rate has been slightly improved, but according to our observation, is still in the rising cycle. The central bank did not put the MLF on the 7-day liquidity to do short-term hedge; the funds face is still under pressure.
                                                                                    Dong LV (Investment Certificate NO. TZ008452)