Yields Gain

A mixed bag heading in to month-end, yields higher in general as data from the region paints a positive picture.

INDIA: Yields are mixed across the curve, markets await the announcement of the April – September borrowing plan said to be released today. At the release of the budget on February 1 the government announced plans to issue INR 12.1t on government debt.

INDONESIA: Yields higher, moves mixed across the curve. The government said it received IDR 15t of bids at greenshoe option on Wednesday, after a disappointing sale yesterday. The government sold KRW 4.75t against a target of IDR 30t, with incoming bids of IDR 33.95t. This was the smallest sale amount since 2016 with the government reluctant to lock in higher yields.

CHINA: The PBOC matched maturities with injections again today, the eighteenth straight day of matching maturities, while the bank hasn't injected funds since February 25. Repo rates have risen heading into month and quarter end. Overnight repo rate up 51bps at 2.1097%, while the 7-day repo rate has come off highs and is last at 2.2285%, above the 2.20% offered by the PBOC. The PBOC earlier said it would ensure adequate liquidity through April. Bond futures are essentially flat, still buoyed by the news yesterday of inclusion on the FTSE Russel WGBI, supported by the prospect of $3.6bn inflows a month.

SOUTH KOREA: Futures in South Korea are higher but have declined through the session after gapping higher at the open. Data earlier saw confidence in South Korean manufacturers rise to 91, the highest since 2011. Encouragingly, exporters and domestic focused firms both saw confidence increase and shows optimism around the economic recovery.