Yields Rise

Little in the way of tier 1 headline flow saw bond markets mull over progress on a US stimulus bill and a terrorist attack on an oil port in Saudi Arabia.

• INDIA: Bonds under pressure after a weak set of auctions on Friday, underwriters had to step in to save the sales again. Downside is limited by last week's announcement of an increase in purchases at operation twist.
• INDONESIA: Sharp sell off in Indonesian bonds saw 10-year yield up 15bps at 6.84%, highest since October. Indonesian government announced it was to expand Covid-19 movement restrictions, while capital flight is also a concern.
• CHINA: The PBOC matched liquidity withdrawals with injections, the bank has not added funds on a net basis since Feb 25, and last week drained a net CNY 30bn. Repo rates have risen in response, overnight repo rate rises 13bps to 1.70% while the 7-day hits the highest since Feb 23 at 2.24%. Bonds were initially lower on strong trade data, but came off worsts as equities dropped.
• SOUTH KOREA: Futures were initially in positive territory but swung to losses after the auction results. The KRW 3.2tn 3-year sale drew an average yield of Yield: 1.09%, a 10bps concession on the previous sale, but cover at 2.89 was down from 3.13 previously.