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EGBs-GILTS: Weighed Down By Equity Recovery


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  • INDIA: Yields higher in early trade. Bonds are expected to come under pressure again today as oil prices continue to rise with Brent claiming the $75/bbl handle. Yesterday the RBI converted INR 67bn of short dated bonds to longer maturities under its switch operation, less than the INR 100bn announced. On the coronavirus front India administered 8.62 million vaccine doses in the last 24 hours, a daily record. There were 42,640 cases in the past 24 hours
  • SOUTH KOREA: 10-Year future is lower but the 3-year future proving more resilient and just keeping in positive territory. There were reports earlier that the BoK plans to reduce 2-Year MSB (monetary stabilization bond) issuance by around KRW 2tn to KRW 3.5tn, and will instead adopt a 3-Year MSB for around KRW 1.3tn a month. Cash curve twist steepens, 20-year yield some 1.7bps higher post auction. The sale saw bid/cover soften slightly from the previous sale of the line.
  • CHINA: The PBOC matched maturities with injections, repo rates crept higher for the fourth session in a row. China is likely to keep liquidity level appropriate and policies stable, and the market needs not to be concerned even as the pace of credit expansion has slowed, the Securities Times reported citing analysts. Monetary policies will emphasize two structural aspects of extending the terms for small business loans and green finance, the newspaper said adding that regulators may also judge the soaring commodity-driven PPI to be unsustained, which means that MLF isn't likely to be raised due to inflation.
  • INDONESIA: Yields higher across the curve. The daily nationwide count of new Covid-19 infections rose to a record. The 14,536 cases detected on Monday pushed the total case count above 2mn. Econ Min Hartarto announced new restrictions in areas mostly affected by the virus, despite calls by exports to implement a wider lockdown. Elsewhere FinMin Indrawati said the Indonesian government has gradually reduced its financing dependency on the central bank due to a more stable and improving situation in the bond market.