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A Plethora Of Themes

ASIA RATES
  • CHINA: The bank drained a net CNY 80bn of liquidity via its OMOs, injecting CNY 20bn via 7-day reverse repos. After spiking following a CNY 260bn liquidity withdrawal on the first day back from the LNY break yesterday, the overnight repo rate has dropped and is now at 1.85% - broadly in line with levels pre-break. Cash bonds were bid as equity markets suffered, some light steepening seen.
  • INDIA: Indian bond markets are closed for a holiday, cash bonds sold off yesterday after weak auctions and up to 99% dealer takedown mandated by the RBI.
  • SOUTH KOREA: Futures sold off at the open amid talk of a fifth government handout, without details of the fourth being finalized, but pared some of the move as equity markets sold off with coronavirus cases still above 500.
  • INDONESIA: BI cut rates and downgraded growth forecasts yesterday, the bank noted limited room for further cuts. Bonds sold off across the curve with the move more dramatic in the 5-year sector, yields up 8bps.

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