MOF To Flexibly Adjust Issuance

Futures higher and yields lower across the curve, 3-Year future is up 8 ticks at 109.01, 10-Year up 29 ticks at 1.2284. Yields are coming off multi-year highs with the move focused in the belly, 10-Year yield down 1.6bps. The main driver of the move is comments around issuance from the MOF earlier, the government said it will flexibly adjust sales volume of bonds by maturity to help stabilise the debt market. Elsewhere, the MOF sold a total of $1.3bn of USD and EUR denominated bonds; a reminder that earlier this week there were reports that the MOF is considering a euro-denominated green bond deal, this would be the first euro-denominated issue with other green issues in the region (from South Korea, Hong Kong and Indonesia) having been in dollars. Meanwhile, there were reports that the 70% vaccination threshold could be hit by October 25 which could lead to a loosening of restrictions and a gradual return to daily life.