Mostly Cheaper But Outperforming Global Bonds

Asian Government Bonds are dealing slightly cheaper, outperforming global bonds, which have continued to see yields push higher. US tsys are trading ~1bp richer in today's Asia-Pacific session after yesterday’s post-Q1 GDP cheapening.

• The US 10-year yield currently sits at 4.70% versus the YTD high of 4.74%, set yesterday. Today’s US data calendar shows Personal Income/Spending and UofM Sentiment.
• China Government Bonds are dealing flat to 1bp as official rhetoric continues to push the stability line and stronger supervision of FX markets. The other focus point has been the cautioning around low domestic bond yields and that the PBoC is not embarking on QE.
• Today’s modest cheapening has done little to stem the rise in 2- and 10-year US-CH yield differentials, both of which are currently at their highest levels in the cycle.
• Next week, all eyes will be on the China PMIs set to be released on Tuesday, with expectations indicating a potential easing from their recent elevated levels.
• South Korean Sovereign Bonds are dealing 1-2bps cheaper beyond the 1-year, ahead of IP data on Tuesday and CPI on Thursday.