Yields Rise

Yields broadly higher as EM Asia takes its lead from the US where yields hold their recent moves higher.

• INDONESIA: Yields rise and curve steepens, Indonesia's parliament will consider potential changes to laws that could give the government more authority over the central bank, with markets nervous over possible over extension of debt monetization.
• INDIA: Yields higher in India, markets are digesting stronger than expected CPI figures after market on Friday which could bring rate hikes sooner than expected. Markets await the results of operation switch later in the session, while trade balance data is also on the docket.
• CHINA: The PBOC refrained from large OMO injections again, matching maturities for a sixth straight day. The bank also matched maturities at the latest MLF operation. This saw money market rates jump, which in turn sapped the bid for equities. Cash yields, meanwhile, were higher following data that showed industrial production and retail sales both above estimates, but highlighted an uneven recovery.
• SOUTH KOREA: Futures were pressured lower throughout the session after gapping lower at the open and sales accelerated after a poorly received auction that saw a 30bps yield concession from the previous sale. Equity markets jumped as units of Korea Shipbuilding won orders worth a total KRW 832bn which further pressured fixed income.