EM LATAM CREDIT: MNI EM Credit Market Wrap - LATAM (21 Feb)

• Malaysia to Sell MYR5.5bn 2028 Bonds.
• Bank of Thailand to Sell THB20bn of 2026 Bonds.
• Bank of Thailand to Sell THB20bn of 183-Days FRNs.
• Singapore to Sell S$5.4bn 364-Day Bills.
• South Korea to Sell KRW700bn 20-Year Bonds.

Yen underperformed in the G10 space through Wednesday's session. The yen losing nearly 0.65%, the worst G10 performer. All G10 currencies tracked lower against the USD (except for NOK), while USD indices ticked higher, BBDXY index up 0.1%. USD/JPY tracks near 156.55/60 in early Thursday dealings. 

• Yen was weighed by cross asset trends through Wednesday, with global equities mostly higher, with US tech outperforming (Nasdaq nearly +1.3%). Core yields also rose, in the US, Tsy yields are up nearly 4bps for some parts of the curve, led by the 5yr. US-JP yield differentials have stabilized somewhat.
• From a technical standpoint, support to watch is 155.00, the 50-day EMA, and 154.48, a trendline drawn from the Sep 16 ‘24 high. Key resistance and the bull trigger remain at 158.87, the Jan 10 high. Current levels are just above the 20-day EMA at 156.46.
• The BoJ is widely expected to hike tomorrow (96% priced per OIS markets), given little broader market turbulence in the wake of Trump's inauguration at the start of the week. Focus will turn to the outlook if a hike is delivered, with a further full 25bps hike not priced until Q4 of this year.
• Locally today we have Dec trade balance and export figures, along with Japan weekly offshore investment flows.
• Note the following in terms of the FX option expiry space for NY cut later: Y155.00($1.7bln), Y156.00($987mln), Y156.15-20($561mln), Y156.50-60($734mln). 

Risk-sensitive AUD and NOK outperformed the G10 on Wednesday as equities rallied with the S&P closing just shy of a record high. AUDUSD is off its intraday high of 0.6296 to be flat at 0.6273. The USD index was 0.1% higher. 

• AUDUSD’s bearish trend continues with lower lows and lower highs. Initial support and bear trigger is 0.6131, while initial resistance is at 0.6302, January 6 high.
• Yen underperformed the G10 driven by higher US yields. As a result AUDJPY rose 0.7% to 98.21, close to the intraday high.
• AUDNZD rose to a peak of 1.1086 following Q4 NZ CPI data and then range traded for the rest of the day finishing up 0.2% to 1.1074.
• AUDEUR is up 0.1% at 0.6025 after a high of 0.6029. AUDGBP trended higher over the European session to be up 0.3% to 0.5093.
• Equities rallied with the S&P rising 0.6% and Euro stoxx +0.8%. Oil prices were lower again with Brent -0.4% to $78.94/bbl. Copper fell 1.1% and iron ore is around $104/t.
• There are no data or events in Australia today.