Citi‘s Most Read - Pan Asia

Research evidence excerpt

Citi‘s Most Read - Pan Asia

Haynesville production in 2H26 and 2027 which should loosen fundamentals.

Therefore, we lower our TTF price forecast to average $12.4/MMBtu (€37/MWh) in

2H26 and $9.2/MMBtu in 2027 (€27/MWh), JKM prices to $13.5/MMBtu in 2H26

and $9.5/MMBtu in 2027, and Henry Hub to $3.2/MMBtu in 2H26 and

$2.8/MMBtu in 2027.

Anthony Yuen | Maggie Xueting Lin | Xiaodan Zhu | Maximilian J Layton | Kenny Hu, CFA

Global natural gas prices - historical and forecasts for Asian JKM LNG, European TTF and US

Henry Hub natural gas - generally lower due to various forms of oversupply

China Economics - Takeaways from Lujiazui Forum

China’s top financial regulators gathered today at the Lujiazui Forum in Shanghai,

announcing multiple policies and discussing economic and regulatory issues.

Three notable developments in our view include the PBoC’s new interest rate

corridor, more institutional mechanisms to facilitate RMB internationalization,

and regulatory precaution on financial risks including pledged liquidity support for

NBFIs during market stress. We see today’s announcements as largely neutral in

terms of cyclical policy stance. Upcoming reforms on loan rate and the PBoC’s

managed RMB appreciation bias could be two relevant watch points for the

markets.

Xiangrong Yu | Xinyu Ji

The PBoC tweaked and narrowed its interest The tweak doesn’t amount to an outright

rate corridor for short-term rates today easing step and we still expect a symbolic

10bps rate cut in 26H2E

%3.0 PBoC's Interest Rate Corridor %2.5 DR001 and Interest Rate Corridor

2.5 7D SLF

Jul 8, 2024: temporary Jun 17, 2026:

overnight reverse repo/repo narrowing 2.0 Upper Bound 2.0

7D Reverse +50bps +25bps Repo 1.5

-20bps -25bps

1.5

1.0

Interest Rate

on Excess

0.5 Reserves Lower Bound