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Cheaper With Global Bond Market Trends

ASIA RATES
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Asian Government Bonds are cheaper in line with recent global market developments.

  • China Government Bonds are dealing ~1bp cheaper across benchmarks after onshore media urged local investors to be cautious around speculative trades in the recent ultra-long bond issuance (per BBG).
  • Chinese President Xi Jinping urged deeper reforms for some of the country’s key sectors as investors look for hints on major policy shifts designed to prop up a weakening economy. Xi said areas including property, employment and childcare are in need of reform breakthroughs at a symposium in Shandong province on Thursday, according to a report by the Xinhua News Agency. (See link)
  • The firmer US yield backdrop is pushing US-CH 2yr yield differentials back close to late April cyclical highs (last +313bps). The 2yr CGB yield yesterday broke below 1.80%, which had marked recent lows. It is currently 1.79%.
  • South Korean Sovereign Bonds are also heavy, with yields 1-4bps higher as the market continues to digest the recent BoK policy decision.
  • Most sell-side analysts look for BoK easing to commence in H2, albeit with varying views on the timing of the first cut.
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Asian Government Bonds are cheaper in line with recent global market developments.

  • China Government Bonds are dealing ~1bp cheaper across benchmarks after onshore media urged local investors to be cautious around speculative trades in the recent ultra-long bond issuance (per BBG).
  • Chinese President Xi Jinping urged deeper reforms for some of the country’s key sectors as investors look for hints on major policy shifts designed to prop up a weakening economy. Xi said areas including property, employment and childcare are in need of reform breakthroughs at a symposium in Shandong province on Thursday, according to a report by the Xinhua News Agency. (See link)
  • The firmer US yield backdrop is pushing US-CH 2yr yield differentials back close to late April cyclical highs (last +313bps). The 2yr CGB yield yesterday broke below 1.80%, which had marked recent lows. It is currently 1.79%.
  • South Korean Sovereign Bonds are also heavy, with yields 1-4bps higher as the market continues to digest the recent BoK policy decision.
  • Most sell-side analysts look for BoK easing to commence in H2, albeit with varying views on the timing of the first cut.