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MNI

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EUROZONE ISSUANCE

EGB Supply for W/C Jul 26

USDCAD TECHS

Pullback Considered Corrective

US TSYS SUMMARY

What a Short, Strange Trip It's Been

GLOBAL POLITICAL RISK

Pfizer, Moderna Jabs Retain High Trust; AZ, Sputnik Lower

AUDUSD TECHS

Trend Indicators Remain Bearish

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Market closures in several markets, including China, kept liquidity and news flow thin during the session. In India focus turns to inflation data later today after another poorly received auction last week.

  • INDIA: Yields higher in early trade, Friday's auctions were poorly received, the RBI devolved INR 99.75b of the benchmark 5.85% 2030 bond on primary dealers. Elsewhere there were reports that the RBI is exploring the possibility of investing in top rated foreign corporate bonds to generate higher yields. Focus will turn today to inflation data later in the session, CPI is expected to overshoot again, but the RBI are expected to look through this in order to help the recovery and have pledged to maintain an accommodative stance.
  • SOUTH KOREA: Futures lower in South Korea, dropping at the open then hugging a narrow range. Comments from BoK Governor Lee on Friday led markets to believe that the bank could be considering an interest rate hike and saw yields rise. 10-year yield now around 4.5bps below its 2021 high. Lee said "the current accommodative monetary policy should start to be normalized at an appropriate timing in an orderly fashion if the economy is forecast to continue its solid recovery." The MOF sold 10-year paper, the sale went down smoothly with a sale size around KRW 37bn bigger than announced. Bid/cover was in line with the previous auction despite lower yield.
  • INDONESIA: Yields mixed in Indonesia. Indonesia has extended luxury tax relief on vehicles with smaller engines, as it seeks to support demand amid the outbreak of Covid-19. Meanwhile, the gov't is proposing a hike to personal income tax on people earning more than IDR5bn a year. Indonesia's latest monthly trade report will be released tomorrow, while Bank Indonesia are set to deliver their monetary policy decision on Thursday. All analysts surveyed by BBG expect Indonesian policymakers to stand pat on benchmark interest rate.