EM ASIA CREDIT: Q4 Results: Hyundai Motor (HYUCAP, A3/A-/A-) - Miss

• A report in China’s 21st Century Business Herald suggests a heavy focus from the PBOC on bond market activity will result in the first batch of finesse being announced imminently with CNY10 m fines to be levied.  (source: MNI – Market News).
• Central Bank Drains Liquidity via OMO. (source: MNI – Market News).
• Major equity indices are all positive today with Hang Seng +1.08%, CSI 300 +0.75%, Shanghai +0.68% and Shenzhen +0.40%
• CNY: Yuan Reference Rate at 7.1876 Per USD; Estimate 7.2993
• Bonds:  earlier bonds jumped higher in yields on the news story mentioned above only to move quickly back to near flat on the day.  10YR 1.713% (+0.5bp)

TYH5 is 108-18, +0-03 from NY closing levels. 

• Cash bonds are flat to 1bp richer in today’s Asia-Pac session after yesterday’s heavy session.
• Benchmark yields finished yesterday 3-7bps higher, with the 7-year leading.
• Today will see Philadelphia Fed Non-Manufacturing Activity and Richmond Fed Manufacturing Index alongside Tsy $28B 2Y FRN & $70B 5Y Note auctions.

• As the US averted a shutdown data released shows the US consumer’s confidence has slipped for the first time in three months on concerns that the Trump administration will create uncertainty with their policies.
• The Consumer confidence index dipped to 104.7 from 111.7 in the month prior and headline durable good figure of -1.1% MoM was viewed as a miss and despite the data, bonds sold off taking gold with it.
• Opening at $2,612.29 in light volumes it drifted up to $2,619.85.
• Having had a strong year on the outlook for rate cuts, the next few months for gold will hinge on the ability of the Fed Reserve to deliver rate cuts in 2025 and the subsequent impact on the USD.