** The main stories out of the region**
U.S. 10y treasury yields were 4bp lower at 4.3% in Asia hours. Fridays payroll rose 151k in February, a little lower than consensus (160k), with Fed Chair Powell saying the path to 2% inflation will be bumpy.
In Asia emerging market govie/agency bonds, the bias is for wider spreads. Indonesia 10y has been under a bit of pressure today, with spreads around 4bp wider. The markets perhaps starting to consider what the implication might be for the economy and for companies, as the State becomes more involved via the newly launched sovereign fund. The weakest performer today was Indonesian energy company, PT Medco Energi Internasional, with the $ 4/29 bond 24bp wider on the day.
In other news, Chinese real estate company Longfor issued a profit warning after close Friday, but we believe the market is more likely to focus on real estate green shoots and State support. In addition, Taiwanese chipmaker TSMC reported another strong month of revenues, year-to-date revenues up 39% YoY. Finally, we have a new mandate for a long 3yr $ benchmark from Tata Capital as well a multi-tranche mandate from LG Energy.
Best & Worst Performers (zsprd, bp)
Source: Bloomberg