Positive Sentiment Weighs On Fixed Income

A resurgent reflation trade saw risk assets bid and weighed on safe havens in Asia on Monday, volumes still fairly muted as some markets in the region are still away for LNY.

• INDIA: Bond futures are lower, data on Friday showed inflation slipped from the previous month, but at 4.1% is almost bang on the mid-point of the RBI's range. This will likely curb calls of a rate hike from the RBI, but could serve to increase calls of a rate cut with 5 analysts predicting a cut at the previous meeting.
• SOUTH KOREA: Bond futures slipped, export data was positive while reports that the government is pushing to pass extra budget bill by March and that the budget would result in further issuance.
• INDONESIA: There has been selling across the curve, focused in the belly ahead of a raft of supply due tomorrow.