Overnight Price Action
Asian markets have traded with a bullish risk/bearish USD tone. S&P futures are up 0.4%, the Nikkei rallied 1.1%, the HSI is up 0.5%, and Kospi has risen 0.4%, but Shanghai is down 0.3%. The US 10yr yield has risen 1bps to 2.5197.
The dollar opened weaker in Asia, but clawed back losses through the Asian morning. EURUSD traded briefly above 1.381, but has edged down to 1.3809. AUDUSD rose to a high of 0.9616 before dipping to 0.9606, and USDJPY has barely moved at 97.62. The MYR has been the main mover in EM Asia FX, rallying 0.6% to 3.3175 to the dollar in response to the FY14 budget announced late Friday. USDKRW has been flat at 1061 thanks to both verbal and likely actual intervention by the Korean authorities. USDCNY fixed a mere 30pips higher to 6.13360.
JGB yields are up very marginally. China’s 7-day repo rate rose 5bps to 4.93, pushing swap rates up 3 – 5bps. Other Asian rates markets were mixed with Korean yields up 1bp, but Thai rates were down 1 – 2bps in response to weaker-than-expected production data and mixed Malaysian yields.
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Credit Suisse