Japan, China, India, Malaysia, South Korea: Asian Bonds, Currency Preview
The following events and economic reports may influence trading in Asia’s local bonds and currencies today. Bond yields and exchange rates are from the previous trading session unless stated otherwise.
Japan: Chief Cabinet Secretary Hirofumi Hirano will hold media briefings at 11 a.m. and 4 p.m. in Tokyo.
Japan Business Federation Chairman Fujio Mitarai will hold a media briefing at 3:30 p.m. in Tokyo. The federation, known as Keidanren in Japanese, is the nation’s largest business lobby.
The Cabinet Office will release at 2 p.m. in Tokyo its index of consumer confidence for March.
The yield on the 1.4 percent government bond due March 2020 was at 1.34 percent, according to Japan Bond Trading Co., the nation’s largest interdealer debt broker. The yen traded at 91.99 per dollar at 7:39 a.m. in Tokyo.
China: The government is “looking into” yuan policy changes, Li Yuanchao, a senior Communist Party official, said in an interview in Singapore on April 17. Asked if the government has reached a consensus on whether the yuan will be revalued, Li said: “This is an issue we are looking into.”
The yield on the 2.23 percent note due in March 2013 was at 2.37 percent, according to the National Interbank Funding Center data. The yuan traded at 6.8255 per dollar.
India: The central bank is likely to boost the benchmark reverse repurchase rate by at least a quarter of a percentage point to 3.75 percent when policy makers will meet tomorrow, according to all 25 economists in a Bloomberg News survey. Nine predict a half-point increase.
The government will raise as much as 120 billion rupees ($2.7 billion) selling bonds maturing in 2016, 2020 and 2027 at an auction on April 23, the central bank said after markets closed on April 16.
The yield on the 6.35 percent bond due January 2020 was at 8.08 percent, according to the central bank’s trading system. The rupee was at 44.3275.
Malaysia: The government may announce this week the size and date of its planned auction of August 2015 bonds. The central bank will sell 3 billion ringgit ($940 million) of 65- day notes.
The yield on the 4.378 percent bond due November 2019 was 4.05 percent. The ringgit was at 3.1925.
Singapore: The government will sell S$3.5 billion ($2.5 billion) of 91-day T-bills.
The yield on the 2.5 percent bond due June 2019 was at 2.70 percent. The Singapore dollar was at S$1.3729.
South Korea: The government will sell 1.6 trillion won ($1.4 billion) of 10-year bonds. The central bank will sell 1.7 trillion won of 91-day and 2.2 trillion won of 28-day bills.
The yield on South Korea’s 5.75 percent bond due September 2018 was 4.96 percent, according to Korea Stock Exchange. The won was at 1,110.23.
Taiwan: Export orders soared 40 percent in March from a year earlier, after rising 36 percent in February, according to the median estimate in a Bloomberg survey of 10 economists before the Ministry of Economic Affairs releases the data on April 20.
The yield on the 1.375 percent bond maturing in March 2020 was at 1.445 percent, according to Gretai Securities Market, Taiwan’s biggest exchange for bonds. The Taiwan dollar was at NT$31.39.
Philippines: The government will sell 1.5 billion pesos ($34 million) of 91-day, 3 billion pesos of 182-day and 3.5 billion pesos of 364-day bills. The central bank will release March balance of payments data today. The country posted a deficit of $125 million in February.
The central bank has scope to keep its benchmark interest rate at a record low while inflation remains within target and stocks and property aren’t rising too fast, Deputy Governor Diwa Guinigundo said in an April 16 interview.
The yield on the 7.75 percent debt due February 2020 was 7.958 percent, according to Philippine Dealing & Exchange Corp. The peso was at 44.40 per dollar.
Thailand: The government will sell 4 billion baht ($124 million) of 28-day bills, and 5 billion each of 91-day and 182- day debt.
Prime Minister Abhisit Vejjajiva appointed army chief Anupong Paojinda to oversee antigovernment protests in Bangkok. Anupong will replace Deputy Prime Minister Suthep Thaugsuban, Abhisit said in a nationally televised address on April 16.
The yield on the 3.875 percent bond maturing June 2019 was 3.58 percent, according to the Thai Bond Market Association. The baht was at 32.25 per dollar.
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