Rising Tide Lifts All Safe Havens

Broad risk off themes saw equity markets hit and bonds supported.

• INDIA: Yields lower across the curve in India, the space supported by broad risk off themes and the decision to cancel this week's bond auctions. There are some concerns over a pickup in the number of coronavirus cases in India; active infections in have continued to climb, there were over 40,000 fresh cases in 24 hours. New infections have been exceeding single-day recoveries since March 11.
• SOUTH KOREA: Bonds are higher in South Korea as equity markets come under. BoK Gov Lee gave a positive assessment of the economy. He also touched on bond purchases, he noted the amount of purchases from the market depends on how quickly yields rise, as well as the reasons behind the rise. He said managing liquidty after the purchases was important, and that the bank could buy bonds without any difficulties.
• CHINA: The PBOC matched liquidity injections with maturities, the thirteenth straight day of matching maturities, while the bank hasn't injected funds since February 25. The overnight repo rate is 9.3bps higher, but below last week's peak, last at 1.793%. 7-day repo rate has declined 13.5bps to 1.8655% after jumping as high at 2.75% on Monday. Bond futures are higher with equity markets rapidly losing ground, 10-year yield fell to lowest since early Feb.
• INDONESIA: Yields lower across the curve. The government announced today its decision to cancel tomorrow's auction after taking into account the latest financial market conditions, yesterday's auction was poorly received with around 50% of the target filled. FinMin Indrawati told parliament that pandemic will further delay Indonesia's turnaround with GDP figures expected to show the economy has shrunk.