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EURGBP TECHS

Sharp Retracement

FED

NY Fed Weekly Economic Index (WEI)

FED

JP Morgan Take on FOMC DOTs

GBPUSD TECHS

Strong Bounce Off Triangle Base

BOND SUMMARY

U.S. Tsys traded unchanged to lower during the bulk of Asia-Pac hours, with the PBoC's latest round of liquidity injections and a message from China's chief diplomat, Yang Jiechi, pointing to the potential for a more constructive Sino-U.S. relationship, albeit with the usual caveats surrounding well defined flash points, seemingly supporting broader risk appetite. Elsewhere, some took solace from after-hours losses for U.S. retail favourite equity name GME. T-Notes trading -0-00+ at 137-05+ last, with the spillover from the latest RBA decision seeing the contract away from lows, although the contract has stuck to a 0-03+ range. Cash little changed across the curve, with a very marginal degree of twist steepening seen.

  • JGBs were unchanged to higher for the bulk of Tokyo trade, with futures last +3, a touch shy of best levels, which came on the back of the RBA decision and in the wake of a 10-Year JGB auction which was a little firmer than exp./prev., but was still relatively soft in the grand scheme of things. Cash JGBs were a touch firmer across the curve, with swap spreads generally a little wider on the day.
  • Aussie bonds were softer into the first RBA decision of '21, but the RBA's pre-announcement of A$100bn worth of bond purchases, which will run at the same rate as the current scheme when it runs dry in mid-April, caught markets off guard owing to its timing (the size of the new scheme was in line with broader exp.). The rhetoric surrounding the Bank's economic projections was a little more upbeat (as expected), but wasn't a gamechanger.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com