EM ASIA CREDIT: Bank of the Philippine Islands (BPIPM, Baa2/NR/NR) $ mandate

Flows were mixed last week, with Taiwan seeing about $1b of inflows, with $615m coming on Friday. India erased roughly half of Wednesday large inflow, to post another week out outflows.

• South Korea: Recorded -$63m in outflows Friday, bringing the 5-day total to -$329m. YTD flows remain negative at -$1.694b. The 5-day average is -$66m, better than the 20-day average of -$82m but worse than the 100-day average of -$106m.
• Taiwan: Posted $615m in inflows Friday, bringing the 5-day total to $1.003b. YTD flows remain negative at -$2.037b. The 5-day average is $201m, better than the 20-day average of $74m and the 100-day average of -$49m.
• India: Recorded -$405m in outflows Thursday, bringing the 5-day total to -$535m. YTD outflows remain heavy at -$11.142b. The 5-day average is -$107m, better than the 20-day average of -$234m and the 100-day average of -$226m.
• Indonesia: Posted -$43m in outflows Friday, bringing the 5-day total to -$71m. YTD flows remain negative at -$718m. The 5-day average is -$14m, better than the 20-day average of -$26m and the 100-day average of -$33m.
• Thailand: Saw -$21m in outflows Friday, reducing the 5-day total to $64m in net inflows. YTD flows remain negative at -$225m. The 5-day average is $13m, better than the 20-day average of $3m and the 100-day average of -$19m.
• Malaysia: Registered -$19m in outflows Friday, bringing the 5-day total to -$127m. YTD flows are negative at -$912m. The 5-day average is -$25m, worse than the 20-day average of -$22m and in line with the 100-day average of -$27m.
• Philippines: Recorded -$7m in outflows Friday, bringing the 5-day total to -$47m. YTD flows remain negative at -$176m. The 5-day average is -$9m, worse than the 20-day average of -$4m and the 100-day average of -$5m.

Table 1: EM Asia Equity Flows

The AOFM sells A$300mn of the 4.25% 21 June 2034 Green Bond:

• Average Yield (%): 4.4294 (Prev. 4.3965)
• High Yield (%): 4.4325 (Prev. 4.3975)
• Bid/Cover: 5.3833x (Prev. 4.5333x)
• Allotted at Highest Accepted Yld as % of Bid at that Yld (%): 12.9 (Prev. 72.7)
• Bidders: 43 (Prev. 28), 17 (Prev. 9) successful, 10 (Prev. 3) allocated in full

The USD is weaker in the first part of Monday trade, the BBDXY index ticking down by 0.10% to 1284.85. This leaves the index fairly close to its simple 100-day MA. We are still close to last week's multi month lows at 1282.2.

• JPY and CHF are lagging broader USD softness so far today. Both currencies, particularly yen, outperformed during the risk off US session on Friday. USD/JPY was last little changed close to 149.30. USD/CHF was at 0.8975/80.
• Some medical experts looked to play down fears of a fresh pandemic, after it was reported a new covid like virus that can reportedly transmit from bats to humans weighed on broader risk appetite on Friday (including US equities). So far today US equity futures are +0.35-0.40% firmer.
• AUD and NZD have ticked up, but remain short of recent highs. AUD/USD last near 0.6370, NZD/USD close to 0.5750. Earlier NZ retail sales volumes for Q4 last year printed better than forecast with discretionary spending recovering.
• EUR/USD is up a touch to 1.0475/80 in latest dealings. The German election saw the conservative CDU/CSU win the most votes, which was in line with expectations. Focus now shifts to what type of coalition government will be formed.
• There is little in the way of further data outcomes/event risks in today's Asia Pac session, leaving markets on headline watch. Japan markets are also out today (meaning no US cash Tsy trading). Tsy futures are softer in early dealing today.