CROSS ASSET: US Equity Futures Re-open Lower, Yen Firms
Apr-03 22:31
No respite for US equity futures after Thursday's sharp fall. We have re-opened weaker in the first part of Friday Asia Pac trade, eminis down around 0.30%, slightly outpacing Nasdaq futures weakness. This is seeing yen outperform in the G10 space. USD/JPY was last under 145.70. Intra-session lows from Thursday were at 145.20. AUD and NZD down slightly at this stage. AUD/USD last near 0.6325/30, NZD/USD just under 0.5790. US 10yr Tsy futures are higher since the open, but sub Thursday intra-session highs.
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GOLD: Gold Gains as Tariff Headlines Impact Risk Appetite.
Mar-04 22:28
- Gold had a strong session overnight in the US finishing at US2,917.89, a gain of +0.87%
- As tariff headlines dominated markets, safe haven assets like gold performed well.
- The trade war is now fully underway with over US$100bn of retaliatory tariffs from Canada, China imposing tariffs on agricultural products and Mexico set to announce their reply this weekend.
- Markets are now fearful of stagflation, pushing bond yields higher and gold higher.
- What now looks like profit taking last week, the last two days of gains are pairing back the losses from last week.
- Having broken back through the 20-day EMA of $2,887.68, gold’s next key technical will be the 24 February high of $2,951.73.
ASIA: Government Bond Issuance Today.
Mar-04 22:18
- Bank Indonesia to Sell 276D SUVBI Bills
- Bank Indonesia to Sell 95D SUVBI Bills
- Bank Indonesia to Sell 32D SUVBI Bills
- Bank Indonesia to Sell 367D SUVBI Bills
- Bank Indonesia to Sell 185D SUVBI Bills
- Thailand to Sell THB 7 Bn of 2072 Bonds
- Thailand to Sell THB 30 Bn of 2035 Bonds
- Vietnam To Sell VND 1.0Tln 2040 Bonds; (TD2540037)
- Vietnam To Sell VND 0.5Tln 2055 Bonds; (TD2555052)
- Vietnam To Sell VND 12.0Tln 2035 Bonds; (TD2535023)
- Hong Kong to Sell HK$1.5 Bn 5-year Bonds
- Hong Kong to Sell HK$0.5 Bn 20-year Bonds
- China to Sell 40 Bn Yuan 63-Day Bills
- Bank of Korea to Sell 2 Tn Won 2-Year Bonds
- South Korea to Sell 5.8 Tn Won 30-Year Bonds
- South Korea to Sell 2 Tn Won 63-Day Financial Bills
- India to Sell INR120 Bn 182-Day Bills
- India to Sell INR140 Bn 91-Day Bills
- India to Sell INR70 Bn 364-Day Bills
BONDS: NZGBS: Cheaper As US Yields Rebound Off Lows After Equity Reversal
Mar-04 22:03
In local morning trade, NZGBs are sharply cheaper after US tsys finished with a bear-steepener, yields 4-9bps higher.
- This came after US tsys reversed off Tuesday morning's yield lows as stocks rebounded off lows. Nasdaq firmly in the green before making a late retreat ahead of the close. Another factor was a retreat in Bunds amid reports officials were proposing an E500B "whatever it takes" defence fund.
- No substantive US data Tuesday, "I do factor in some effect of tariffs on inflation on prices. I do think we're going to see that later this year," Williams told a Q&A at a Bloomberg Invest event.
- Focus now turns to President Trump addressing the joint session of Congress tonight at 2100ET. Followed by ADP private employment data tomorrow morning at 0815ET.
- Late session chatter that President Trump wants to announce a minerals deal with Ukraine after all.
- Swap rates are 7-9bps higher, with the 2s10s curve steeper.
- Today, the local calendar will see ANZ Commodity Price data.
- On Thursday, the NZ Treasury plans to sell NZ$250mn of the 0.25% May-28 bond, NZ$200mn of the 4.25% May-36 bond and NZ$50mn of the 1.75% May-41 bond.
