EM ASIA CREDIT: Adani Ports (ADSEZ, Baa3/BBB-/BBB-) U.S. legal questions remain

In Tokyo morning trade, JGB futures are weaker, -9 compared to settlement levels.

• BoJ Governor Ueda reiterated that the central bank will implement appropriate policy to achieve its price target, aligning with recent rhetoric. His remarks were made in response to a question in Parliament.
• M2 & M3 stock rose 1.3% y/y and 0.8% y/y respectively in January.
• “The 1.5% Japan government bond set to mature in March 2034 is cheapest against its peers, according to a Bloomberg analysis that interpolates against a curve.”
• Cash US tsys are flat to 1bp richer in today’s Asia-Pac session after yesterday’s modest sell-off.
• Cash JGBs are 1bp richer to 1bp cheaper across benchmarks, with the 10-year underperforming. The benchmark 10-year yield is 1.5bps higher at 1.332% after making a fresh cycle high of 1.337% today.
• There is 10-year linker supply due today.
• The swaps cure has twist-steepened, with rates 1bp lower to 1bp higher. Swap spreads are tighter.

• The PBOC issued CNY558bn of 7-day reverse repo at 1.50% in this morning’s operations.
• Total maturities today CNY697bn
• Net liquidity withdrawal CNY139bn.
• The PBOC controls and maintains liquidity in the interbank market through the issuance of reverse repo.
• The CFETS Pledged Repo Deposit Institutions 7 Day Index continues to decline down to 1.74%, from 1.90% yesterday.
• China overnight interbank rates are up to 1.84% from 1.50% yesterday.
• China 7-day interbank rates are down to 1.86% from 1.88% yesterday. 

Authorities want to increase foreign investment in advanced manufacturing, finance, telecommunications, medical care, education and creative arts sectors, said Song Siyuan, researcher at the Ministry of Commerce, following the recent State Council's Executive Meeting which focused on boosting FDI. Song said officials want to make foreign-invested enterprises feel assured and confident about China by improving the business environment.