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APAC Credit Continues Move Tighter, India Best Post Election

CREDIT UPDATE
  • Regional Asian equities have surged higher today after softer reading of the Federal Reserve’s preferred inflation measure bolstered hopes for rate cuts, Nvidia announcement of new chips, improving Chinese property sales and the Indian Election.
  • Aus Corps unch to 1bp tighter, Aus Snr Fins 1bps tighter, while are Subs are 1-2bp tighter. China & Korea credit are unch to 1bp tighter. In the EM space, Indonesian quasis are 1bps tighter and EM sovs are unchanged, Indian credit is 2-3bps tighter post the Election.
  • Aus iTraxx CDS unchanged at 65bps & Asia Ex-J iTraxx is down 1bp at 96bps
  • Rates: Local rates are richer today, US Treasury futures have edged higher although trade within Friday's ranges, yields are flat to 2bps lower.
  • Data: Aus - Judo Bank PMI 49.7 vs 49.6 prior & MI Inflation 0.3% m/m vs 0.1% prior. Japan - Capital Spending 6.8% y/y vs 11% est, Jibun Bank Japan PMI Mfg 50.4 vs 50.5 prior. SK - S&P PMI Mfg 51.6 vs 49.4 prior
  • Primary Deals: Australian Rail Track AUD 7yr, NAB 3y at +70 area, NAB 3Y Soft equiv & NAB 10Y at +100 area

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