Overnight Price Action
Moderation in treasury yields to the 2.89%-2.91% range supported risk assets across Asia. Most equity markets staged a decent rebound. The Nikkei rose 2.4%, Kospi gained 1%, Jakarta was up 1.4%, while the Sensex opened marginally lower despite some recovery in INR.
Asian EM FX has stabilized, with USDTHB, and USDMYR off their highs. USDINR opened lower to 64.3, but IDR continued to trade on the weak side at 11015, ahead of Indonesia’s policy package announcement. Asian rates have a calmer day; changes are capped within 2bps to 4bps in most markets. Indonesia swap yields saw more substantial declines.
USDJPY extends its uptrend before petering out just below 99.0. The rest of G10 was mostly treading water. EUR was steady at 1.3348, with AUD at 0.902.
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Credit Suisse