Regional Divergence

Mixed in the region as US Tsys held narrow ranges ahead of CPI data later today.

• INDIA: Markets closed for a local holiday. Markets digest data yesterday that showed CPI rose 5.52%, slightly above estimates but still within the RBI's 2%-6% band, while industrial production fell faster than expected at -3.6%. Meanwhile, India reports another record number of COVID-19 cases and holds the dubious honour of overtaking Brazil as the record holder.
• SOUTH KOREA: Bonds under pressure as equity markets make gains, South Korean President Moon, likely still stinging from his parties (DPK's) defeats in two mayoral contests, hit the wires saying the government needed to actively support those still suffering from the economic effects of the pandemic. 2-year auction size was slightly larger than advertised, but demand still decent.
• CHINA: Futures are higher in China, while in the cash space yields are lower with the 10-year yield hitting the lowest level in two months. Bonds are supported after the PBOC's monetary policy department said it would keep credit growth reasonable and make credit and monetary environment conducive to high-quality economic growth. Sun Guofeng, head of the monetary policy department made the comments late yesterday at a briefing. Sun noted that Monetary supply and aggregate financing growth in 1Q basically matched China's economic growth. Data showed Exports were strong but rose less than expected, while the trade surplus narrowed.
• INDONESIA: Bond yields higher ahead of slated supply today, the government is targeting a sale of IDR 30tn after the previous sale of IDR 4.75tn. Elsewhere, the Finance Ministry announced that it has exempted some taxes in special economic zones for tourism businesses from Apr 1, as part of the new omnibus law on job creation.