Bonds Under Pressure In Risk On Trade

INDIA: Yields are higher across the curve as bonds come under pressure globally, but moves more muted than regional counterparts. Reasons for this include pledged support from the RBI, auction cancellation and additional liquidity operations.

INDONESIA: Cash curve is mixed, belly seeing yields rise, short end yields fall while long end is flat. The finance ministry announced IDR 30tn of bond sales next week after a disappointing sale this week.

CHINA: The PBOC matched maturities with injections again today, the fifteenth straight day of matching maturities, while the bank hasn't injected funds since February 25. The market appears sanguine about liquidity, the overnight repo rate is 24bps lower today at 1.7592%, while the 7 day repo rate has averaged 2.054% since the return from LNY, below the 2.20% prevailing rate at the PBOC. Futures are under pressure as stocks rise after declining for the past three sessions. Cash yields are higher, steepening seen with 30-year supply on the docket today.

SOUTH KOREA: A risk on tone has seen bonds pressured in South Korea; data earlier in the session showed consumer confidence rose to 100.5 in March, up from 97.4 previously. This is the highest reading since January last year. Elsewhere, the IMF upgraded South Korea's growth forecast.