Yields Generally Lower, India Bucks The Trend After RBI

Bonds supported after a decline in US yields spurred by strong data.

• INDIA: The RBI kept rates on hold as expected and outlined an accommodative stance on monetary policy until growth was anchored. Bonds sold off after the announcement, markets looking to the speech from RBI Governor Das at 0730BST/1200IST for any details on bond market support. Yields came off highs after the RBI pledged to ensure ample liquidity.
• INDONESIA: Bonds supported, curve bull steepens. Another disappointing auction yesterday with eh government only selling IDR 7.3tn against a reduced IDR 10tn target, sale is usually around IDR 30tn. Space supported after BI Deputy Gov Waluyo said the bank has scope to keep loose mon pol. Markets await a greenshoe option auction today.
• SOUTH KOREA: Futures higher in South Korea, curve flattens as the BoK auction KRW 2.1tn 2-year MSB's. Some caution after an uptick in the number of COVID-19 cases prompted talk of a fourth wave. South Korean Finance Minister Hong was on the wires, he noted that the IMF report that upgraded global growth forecasts meant that growth in South Korea could also rise above forecasts, and that a recovery expectation could increase caution on inflation. Data last week showed March CPI rose 1.5% y/y, up from February's 1.1% gain and the fastest since January 2020.
• CHINA: The PBOC matched maturities with injections again today, the twenty second straight session of matching maturities, while the bank hasn't injected funds since February 25. Overnight repo rate is steady, last up 3.5bps at 1.805%, 7-day repo rate is up 7.7bps at 1.8772%. China's Securities Depository and Clearing Corp has confirmed that lower rated corporate bonds insured by hedging tools can be used as collateral for repos.