JGBS: Bear-Steepener Pared By Lunch, Legality Of Trump Tariff In Focus
At the Tokyo lunch break, JGB futures are stronger and at Tokyo session high, +20 compared to the se...
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AUD: AUDUSD Unwinds Gains After Reaching 0.6450 As USD Strengthens Again
Aussie is generally outperforming the G10 benefitting from today’s better risk tone with equities rallying, which may be in response to reports of some easing of US auto tariffs but there was little reaction at the time. AUDUSD has given up its gains though to be down 0.1% at 0.6423 after today’s peak of 0.6450. It had fallen to 0.6422 earlier in the session. The US dollar is 0.1% higher on the day.
- AUDJPY is up 0.1% to 91.47 after a high of 91.69. The risk-averse Swiss franc and yen are currently underperforming the G10.
- AUDEUR peaked at 0.5649 and is now up 0.1% at 0.5635. AUDGBP is flat though at 0.4785 off today’s high of 0.4798.
- AUDNZD rose to 1.0785 earlier but is now around 1.0770 to be up 0.1% today.
- Equities are rallying with the ASX up 0.8% and Hang Seng +0.7% but CSI 300 down 0.2%. The S&P e-mini has reversed earlier losses to be up 0.1%. Oil prices are down with WTI -0.5% to $61.72/bbl. Copper is up 0.4% and iron ore steady around $98/t.
- Later US April consumer confidence, March merchandise trade, JOLTS job openings, inventories and February house prices print, as well as the April European Commission survey, Spanish Q1 GDP and preliminary April CPI. The ECB’s Cipollone and Donnery speak.
CHINA: Bond Futures Rally on Liquidity Injection
- This morning’s OMO saw a sizeable liquidity injection and unsurprisingly bonds are rallying.
- China’s 10YR bond future is up +0.185 to 109.04 and remains firmly above all major moving averages, the nearest being the 20-day EMA of 108.73
- The 2YR bond future is up just +0.03 at 102.36 and remains below all major moving averages, the nearest being the 20-day EMA at 102.43.
- The cash market is strong also with the CGB 10yr down -1bp this morning at 1.63% with the Hang Seng and Shenzhen bourses higher whilst the CSI 300 is down marginally
CANADA: Networks Calling Election For Carney, Too Soon To Know If Majority
With results now coming in from Canada’s more populous provinces CBC and CTV are calling that Mark Carney will stay PM but it is still too early to say whether his Liberals will have a majority. There has been little change of seats between parties so far. Elections Canada currently has the Liberals leading in 133 districts (50.0% vote share), Conservatives in 93 (38.7%), Bloc Quebecois in 17 (4.8%) and New Democrat in 3 (4.4%). 172 seats are needed to form a majority government.
