HomeContributorsFundamental Analysis10-Yr Gov't Bond Yields Generally Track Earlier Decline In Treasury Yields

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

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 ÂĄ106.6T (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

 

Trade The News
Trade The Newshttp://www.tradethenews.com/
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Featured Analysis

Learn Forex Trading