Bonds Track UST's Lower

Bonds sold off in the main, reversing moves from the start of this week as regional bonds tracked a sell off in US treasuries.

• INDIA: Yields mixed across the curve, space proving more resilient than regional counterparts. Participants look ahead to today's operation twist, the RBI will purchase INR 100bn of longer dated bonds and will sell the same amount in shorter tenors. The bank has reduced the size of purchases from INR 150bn last week.
• SOUTH KOREA: Futures are lower in South Korea, giving back after four days of gains. Bonds pressured after South Korea passed a budget that entails KRW 9.9tn extra issuance. Curve steepens, the short end still benefitting from the BoK's decision to reduce MSB auctions by 50%, and the implied bias towards a steeper yield curve.
• INDONESIA: Yields higher across the curve, some bear steepening seen after a weak greenshoe option yesterday, which itself followed a weak auction. FinMin Indrawati said yesterday the BI would be vigilant of any spillover from US policy.
• CHINA: The PBOC matched maturities with injections again today, the fourteenth straight day of matching maturities, while the bank hasn't injected funds since February 25. The overnight repo rate is 17bps lower after jumping into the close yesterday, still above yesterday's intraday lows of 1.80% , but below last week's peak, last at 2.793%. 7-day repo rate has risen 30bps to 2.2069% after jumping as high at 2.75% on Monday. Futures are lower amid risk on trade, giving back after four days of gains, moves are muted compared to regional peers though. 21st Century Business Herald reported that the PBoC could conduct the annual review of RRRs today or on Apr 6.