Central Banks In Focus

Fixed income pressured by global bond rout, but auctions, OMOs (and the promise of more) also factored into price action.

• INDIA: Mixed across the curve, short end sees some buying after RBI Gov Das committed to at least 3tn of OMOs in the next fiscal year, similar to this one, and the RBI announced it would hold another twist operation on March 4 at the larger size of INR 150bn. Belly sees some selling ahead of supply later in the session.
• CHINA: The PBOC matched maturities with injections again today which saw overnight repo rates rise 40bps, China's bonds were seemingly immune to the global bond rout with market commentators positing this is because a recovery is already priced in.
• SOUTH KOREA: The Bank of Korea have pledged to purchase KRW 5tn-KRW 7tn in government bonds from the market in the first half of 2021, the bank bought KRW 5tn of government securities from the market in Q4 2020 to combat a rise in yields after a year of bumper issuance. 10-year futures picked up from lows at the open, but are still down on the day.
• INDONESIA: Indonesia's biggest lenders expressed scepticism re: ability of lower interest rates and looser borrowing rules to immediately boost loan growth, yields sharply higher. Global funds were net sellers for the fifth straight session yesterday.