Broad Bid

Bonds supported in general as US tsys extend yesterday's move higher.

• CHINA: The PBOC refrained from large OMO injections again, matching maturities for a seventh straight day, there has been no liquidity added to the system since Feb 25. Overnight repo rates have risen again in response, the overnight repo rate las up 38bps at 2.1401%, though lower then yesterday's high of 2.2634%. The 7-day repo rate briefly popped to 2.30%, but is last at 2.2212%. The higher repo rates have seen equities struggle. Futures are higher as equities slip, 10-year future up 0.155 at 96.85.
• INDONESIA: Yields mixed across the curve. Indonesia said to have received IDR 40tn bids at its IDR 30tn auction, after missing the target for the last three weeks. The recent greenshoe option by Indonesia suggests yields are nearing levels the market is comfortable with.
• SOUTH KOREA: Futures are higher, the move is on the back of reports that the Bank of Korea are considering purchasing government bonds above the KRW 5tn-KRW 7tn previously proposed. The bank will also reportedly reduce the size of the scheduled KRW 2.2tn 2-year auction tomorrow.
• INDIA: Yields lower across the curve in India, bonds advancing for a third day on expectations healthy advance-tax revenues could lead the RBI to reduce the amount of debt supply bought to market. Yields in the 10-year sector remain stubbornly high though, 10-year yield is down 0.6bps, while 7-year yields are down 4.3bps. Meanwhile, participants look ahead to state auctions later today, last week discount margins at auction fell.