Keep Your Eyes On The Ops

Central bank operations continue to exert influence over bond markets in the region with dovish Powell testimony and higher US yields obfuscating price action somewhat.

• CHINA: The PBOC matched injections with maturities today, this follows a net CNY 20bn injection so far this week. The overnight repo rate is higher at 1.7012% up around 47bps, while the 7-day repo rate is steady at 2.2096%. The cash curve has seen some bear flattening as equity markets in mainland China rebound from previous declines.
• SOUTH KOREA: 10-year bond futures initially hit lows as comments on the bond market were conspicuous in their absence at BoK Governor Lee's press conference. Futures came off lows when Lee said the central bank could release government bond buying plan in advance if needed, he caveated this by saying any measures undertaken would not be the same as QE in other nations.
• INDIA: Indian bonds were supported ahead of the RBI's operation twist which will take place today, the INR 100bn operation will see the RBI purchase INR 100bn of long end bonds and sell INR 100bn of short dated bonds. The bank has announced an INR 150bn operation twist on March 4. Market looks ahead to supply tomorrow as well as GDP data.
• INDONESIA: Cash yields are sharply higher, bear flattening seen, the sell off comes after two days of heavy buying after the government said it could reduce debt sales.