10-Yr Gov’t Bond Yields Generally Track Earlier Decline In Treasury Yields

Mar 03 21, 05:55 GMT

General trend

Equity markets in Asia are broadly higher following the mixed openings; most indices are closer to session highs; Financials trade mostly higher, Tech underperforms after Nasdaq decline
Hang Seng and Shanghai Composite have outperformed as financials rise amid targeted RRR cut speculation [Shanghai Banks index gains over 3%; ICBC rises over 4% in HK ]; Gaming firms rise in HK on Macau news; Hang Seng TECH index lagged after Nasdaq decline
Australia S&P ASX 200 ended closer to the best levels [Resources and Financial indices rose];
Nikkei 225 is near the opening level [Gainers include Iron/Steel and Transportation cos.; Electric Appliances and Information & Communication indices lag]
Kospi gained following the lower open [financials rise]
Little initial reaction seen after better than expected Aussie GDP
Companies expected to report during the NY morning include Dollar Tree, Lincoln Educational, Wendy’s

Headlines/Economic data

Australia/New Zealand

ASX 200 opened +0.2%
(AU) AUSTRALIA Q4 GDP Q/Q: 3.1% V 2.5%E; Y/Y: -1.1% V -1.8%E
(AU) Australia Council of Financial Regulators quarterly meeting: Housing lending standards are generally being met, regulators will consider possible responses should things deteriorate and financial risks increase; ASIC and RBA have communicated expectation that ASX commission independent expert review on ASX outage
(AU) Australia total payroll jobs change for Jan 30th-Feb13th: 0.0% v +1.3% prior; Wages +2.1% v 0.4% prior
(AU) Australia Treasurer Frydenberg: The unprecedented global stimulus efforts during the coronavirus pandemic are creating financial stability risks – Press

Japan

Nikkei 225 opened +0.3%
(JP) Bank of Japan (BOJ) Board member Kataoka (Ultra-Dove): Desirable to lower rates to strengthen easing; Personally believe strengthening easing with Yield Curve Control and Policy commitment – speaking in Gunma prefecture
(JP) Japan PM Suga: Will listen to experts on decision for state of emergency; Not much time left to make decision on extending state of emergency
(JP) Japan said to be considering extension of Tokyo State of Emergency by 2-weeks (decision due March 4th (Thurs) – Press
(JP) Japan Feb Final PMI Services: 46.3 v 45.8 prelim (confirms 14th straight contraction)
(JP) Tokyo officials consider requesting a 2-week extension of COVID state of emergency – Nikkei
(JP) Japan Lower House passes FY21/22 budget of ¥106.6T (record size) (yesterday after the close)

Korea

Kospi opened -0.1%
(KR) South Korea Fin Min Hong: Govt to focus on creating 300K jobs by 2025 in the service sector which has been most impacted by pandemic – Yonhap

China/Hong Kong

Hang Seng opened +0.5%; Shanghai Composite opened -0.2%
(CN) CHINA FEB CAIXIN PMI SERVICES: 51.5 V 52.0 PRIOR
(CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net drain CNY0B v Net drain CNY0B prior
(CN) China Securities Journal analysts says PBOC may cut the RRR for certain banks in March – press
(HK) Hong Kong Feb PMI (Whole Economy): 50.2 v 47.8 prior (highest since March 2018)
(CN) China PBOC sets Yuan reference rate: 6.4565 v 6.4625 prior
(CN) China Market Regulator issues fines for platforms Meituan, Pinduoduo, along with Didi Chuxin citing improper pricing
(HK) Macau casinos will no longer require nucleic acid test certificate to enter, effective Midnight March 3rd

Other

(SG) Singapore Feb PMI (Whole Economy): 54.9 v 52.9 prior (highest since June 2018, 3rd consecutive expansion)

North America

(US) Pres Biden: we now expect to have enough vaccine doses for every American by the end of May (vs prior forecast of end of July)
(US) Fed’s Daly (non-voter, dove): recent rise in inflation expectations has been encouraging; a surge in inflation pressures remains unlikely; if policy becomes less accommodative, Fed could change maturity of bond purchases

Europe

(UK) Chancellor of the Exchequer Sunak (Fin Min) extends furlough pay for UK workers through Sept – press

Levels as of 12:15ET

Hang Seng +1.7%; Shanghai Composite +1.4%; Kospi +0.8%; Nikkei225 +0.5%; ASX 200 +0.8%
Equity Futures: S&P500 +0.4%; Nasdaq100 +0.7%, Dax +0.5%; FTSE100 +0.6%
EUR 1.2093-1.2083; JPY 106.89-106.68; AUD 0.7838-0.7813; NZD 0.7303-0.7278
Commodity Futures: Gold -0.0% at $1,733/oz; Crude Oil +0.4% at $59.97/brl; Copper -0.5% at $4.19/lb