India Lockdown Hits Bonds Ahead Of RBI

Yields mostly higher, widespread market closures across Europe and Asia are keeping liquidity thin, while markets await key events later in the week.

• INDIA: Yields higher, The RBI reportedly sold INR 38.8bn of debt in the secondary market last week, a surprise move as the RBI is usually an active buyer in the market to suppress yields. Elsewhere, there is still concern of coronavirus cases. India announced 103,558 new infections in the past 24 hours, a record increase. Mumbai has imposed lockdown measures. Markets await the RBI meeting
• SOUTH KOREA: Bonds are under pressure, futures ground lower throughout the session despite elevated Covid-19 cases and losses in equity markets. Losses accelerated post-auction, demand was decent but the MOF sold an additional KRW 50bn which prompted some over supply concerns. The government plan predicts KRW 14.5tn supply in April, but March went over by some KRW 3.2tn.
• INDONESIA: Yields mostly lower across the curve, some flattening seen. The government has announced a decision to extend movement curbs in several areas for two weeks in an effort to contain the spread of coronavirus.
• CHINA: Closed for a holiday.