Asia Sovs Little Changed, Local FX Lower, ID Trade Surplus Narrows

Asian EM Sovs are mixed today, the INDON curve is slightly out-performing the PHILIP curve. Earlier, Indonesia's trade surplus narrowed a touch, while the PHP dropped the most in over a month.

• The INDON curve has bull-flattened today yields are flat to 2bps higher, with better buying through the 7-10yr part of the curve, while the PHILIP curve has bear-flattened.
• The front-end PHILIP curve continues to trade 5bps tighter than INDON but flattens out and trades 5-8bps wider out the curve.
• Cross-asset: Local currencies are weaker today, with the USD/IDR up 0.24% at 16,176, while the USD/PHP is 0.30% higher at 58.562. Equities are mixed with the JCI down 0.60%, while the PSEi is 1% higher.
• The Indonesian Trade Surplus narrowed to $2.390b from $2.925b, with exports rising just 1.17% vs 4.81% expected and down from 2.85% prior, while imports jumped 7.58% vs 7.20% expected up from a -8.84% drop prior. External debt has also risen to $407.3b in May from $398.8b prior
• Looking ahead, Philippines has Overseas cash remittances for may due out later today, while Bank Indonesia is expected to keep rates at 6.25% on Wednesday