The Global Macro Pulse

Equities generally weakened in Asian trading post FOMC. After a 0.5% fall in the S&P 500 overnight, futures are down 0.4%, the Nikkei is off 0.2%, Shanghai is down 0.7%, and the Kospi has fallen 0.8%. Only the antipodean equity markets are up slightly today.

The dollar traded mixed. EURUSD has fallen to 1.3711, but AUDUSD is essentially flat to its Asian open at 0.9492 as is NZDUSD at 0.8251, the latter finding little direction from the RBNZ statement. After jumping to a high of 98.63 overnight, USDJPY edged lower to 98.43, uninspired by the BoJ’s unchanged policy. In EM Asia FX, the PHP and MYR have fallen 0.4% against the USD, but the TWD, THB, and KRW have strengthened marginally. We suspect the Bank of Korea has intervened, defending the 1059.50 level.

The US 10yr Treasury yield is flat at 2.5306% after its roughly 7bps rise in New York trading. JGB yields are marginally higher, with the 20yr up 1bps to 1.477%.

In China, the PBoC did reverse repos, depressing the 7-day repo rate 50bps to 5.05%. This pushed Chinese swap rates down 6 – 11bps. Yields in most other Asian markets are ups 1 – 3bps in response to the rise in US yields.