Light Risk-Positive Flows Observed Thus Far

Light risk-on trade has been observed thus far, with little in the way of meaningful headline catalysts observed, as we flagged earlier.

• Chinese COVID cases are continuing to trend lower and RBNZ Governor Orr stressed that that the Bank needs to keep inflation expectation anchored. Elsewhere, we have seen the BoK implement the widely expected 25bp rate hike, while the Bank marked its GDP growth forecast lower and CPI expectations higher, once again largely matching wider expectations.
• E-minis are ~0.3% higher on the day, core bonds are a touch cheaper than early Asia levels, while the JPY can be found at the bottom of the G10 FX table. Note that ranges are contained at present.
• Focus now moves to Chinese asset performance in the wake of Premier Li’s Wednesday address in front of a large group of policymakers and officials.