The Global Macro Pulse

Most equity markets are down in Asia today. S&P futures are off 0.2%, the Nikkei has fallen 0.6%, the HSI is off 0.7%, Kospi is down 0.4%, and Shanghai has fallen 0.2%. The US 10yr yield is down very slightly to 2.6366% after falling 2bps in New York trading.

AUDUSD stole the FX show, dropping from 0.9520 to a low of 0.9466 and 0.9474 at the time of writing in response to weaker-than-expected employment data for October. Away from this G10 dollar-pairs have done little with EURUSD sideways at 1.3522 and USDJPY down slightly to 98.61. Trading in most EM Asia exchange rates have been similarly quiet and sideways. USDINR has been the exception, rallying further to 62.6288, its highest level since the end of September.

JGB yields are down across the curve with the 10y yield off 1.4bps to 0.596% and the 20yr down 2bps to 1.481%. Most Asian rates curves have followed the US with yields down 1 – 4bps. China has been the main exception. The 7-day repo rate is up 7bps to 3.95% and swap rates are up 2 – 5bps in response to the PBOC failing to do a reverse repo today. Indian yields have also risen slightly in sympathy with the recent INR weakness.