JGBS AUCTION: 30-Year JGB Auction Results

• With the PBOC withdrawing liquidity again this morning during the OMO,  the year to date withdrawal has topped CNY1tn already.  
• Bonds are weak today post the OMO as all major equity bourses rally.  
• The 10-Yr future is down -0.135 to 107.70, slipping further below all major moving averages.
• The 2-Yr future is down -0.04 to 102.37, also retreating further below all major moving averages.
• Cash is steady with the 2-Yr at 1.377% and the 10-Yr up +1.5bps at 1.87%, it's highest over the last month.  
• As of Dec. 31, regional government issuers had disclosed plans to issue over 2.1 trillion yuan of local bonds in the first quarter as regional authorities move to support major construction projects, Shanghai Securities News reported (per BBG) with strong issuance kicking off this week.  
• An expectation of fiscally proactive policies and focus on infrastructure to support growth will see key support coming from the Central Government for the regions to expedite their issuance needs.   

NZD/USD is trading with a positive bias so far today, although hasn't been able to sustain gains beyond 0.5800 (session highs rest at 0.5806). Mostly positive equity gains throughout the region, coupled with the tick up in US equity futures is providing support. As is the higher commodity price backdrop. Domestic news flow remains light, with the local data calendar not swinging back into gear until next week. We do have a reasonable pipeline of option expiries at the 0.5800 figure level today (just under $0.80bn), which may be influence on spot as well. 

• Broader risk rends look constructive for NZD/USD to test and break above 0.5800 though. The 200-day EMA is near 0.5820/25, while Dec highs were at 0.5853. Support has been evident around the 0.5740 region for a number of weeks.
• We may see some spill over to NZD tomorrow from the Nov Australian CPI print. The AUD/NZD cross has consolidated just under 1.1600 in recent dealings. Earlier highs for 2026 were at 1.1644. The cross is largely moving in line with AU-NZ 2yr swap rate differentials, which were last +133bps. 

*JAPAN 10Y GOVT BOND AUCTION MAY HAVE 100.00 LOWEST PRICE:POLL – BLOOMBERG