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Richer Despite Subdued Start To The Week For Global Bonds

ASIA RATES
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Asian Government Bonds are richer despite global bond markets treading water to start the week. Cash US tsys are dealing little changed in today’s Asia-Pac session after a modest richening on Monday.

  • China Government Bonds (CHGBs) are dealing flat to 3bps richer after China’s MoF vows to strengthen coordination between fiscal, monetary policies and financial reforms, and improve basic currency injection and money supply control mechanisms. The MoF added that it will coordinate the sale of general and special sovereign bonds and set the pace reasonably. (See link)
  • CHGBs were also likely supported by analyst expectations that the PBoC may lower its medium-term lending facility (MLF) rates in the third quarter to reduce economic financing costs. According to experts cited by the China Securities Journal, this move could also lead to a decrease in banks' loan prime rates and help address local debt risks.
  • The South Korean Sovereign Bonds are 1-4bps richer out to the 10-year, slightly cheaper beyond.
  • On the data front, March PPI printed at 1.6% y/y versus 1.5% prior. While the trend is modestly higher, it remains well down on 2021/22 highs near 10% y/y. Tomorrow will see consumer confidence, ahead of Q1 GDP on Wednesday.
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Asian Government Bonds are richer despite global bond markets treading water to start the week. Cash US tsys are dealing little changed in today’s Asia-Pac session after a modest richening on Monday.

  • China Government Bonds (CHGBs) are dealing flat to 3bps richer after China’s MoF vows to strengthen coordination between fiscal, monetary policies and financial reforms, and improve basic currency injection and money supply control mechanisms. The MoF added that it will coordinate the sale of general and special sovereign bonds and set the pace reasonably. (See link)
  • CHGBs were also likely supported by analyst expectations that the PBoC may lower its medium-term lending facility (MLF) rates in the third quarter to reduce economic financing costs. According to experts cited by the China Securities Journal, this move could also lead to a decrease in banks' loan prime rates and help address local debt risks.
  • The South Korean Sovereign Bonds are 1-4bps richer out to the 10-year, slightly cheaper beyond.
  • On the data front, March PPI printed at 1.6% y/y versus 1.5% prior. While the trend is modestly higher, it remains well down on 2021/22 highs near 10% y/y. Tomorrow will see consumer confidence, ahead of Q1 GDP on Wednesday.