The Global Macro Pulse

S&P futures are up marginally after a 0.2% fall in the S&P 500 overnight while the rise in the 10yr Treasury yield that began in New York extended slightly in Asia to 2.7149%. The Nikkei and Hang Seng Indexes are up 0.1% and 0.3% respectively, but most other Asian equity markets are down. Kospi has fallen 0.7%, Taiex is down 0.5%, and the Shanghai Comp is off 0.1%.

EURUSD jumped to a high of 1.3579 in early Asian trading, but has softened slightly to 1.3553. AUDUSD rallied similarly, but has fallen to its New York lows of 0.9409 and USDJPY has dropped to 99.99. Most EM Asia currencies have weakened very slightly vs. the USD in thin trading. USDCNY fixed 12pips lower to 6.1305, a new historic low.

JGB yields are virtually unchanged, but most other Asian yields are up in line with the rise in treasury yields overnight. PBoC liquidity injections have cut the 7-day repo rate 13bps to 4.77%, however swap rates are up a further 2bps today.