EM ASIA CREDIT: China Development Bank: New deals priced

In post-Tokyo trade on Friday, JGB futures closed stronger, +56 compared to settlement levels, after US tsys 

• US equity-index futures have climbed in early Asian trading after President Donald Trump extended a deadline on aggressive European tariffs. Trump agreed to delay the date for a 50% tariff on goods from the European Union to July 9 from June 1. US tsy futures (TYM5) have weakened in early Asia-Pac dealings, with TYM5 at 109-25, -0-09+ from closing levels. Cash US tsys are closed today for Memorial Day.
• US tsys ended Friday little changed. The US 10-year yield had a range of 4.4456% - 4.5409%, closing around 4.51%
• Bloomberg - "Japan's chief trade negotiator indicated he aims to resolve tariff talks in time for a June meeting between PM Shigeru Ishiba and Donald Trump on the sidelines of the G-7 gathering."
• FT - SoftBank's Masayoshi Son proposed a US-Japan sovereign wealth fund to invest in tech and infrastructure.
• Bloomberg - "President Donald Trump announced a partnership between US Steel Corp. and Japan's Nippon Steel Corp., which will keep US Steel in the US and create at least 70,000 jobs."
• Today, the local calendar will see Coincident/Leading Index data alongside an Auction for Enhanced-Liquidity 5-15.5 YR.

ACGBs (YM flat & XM flat) are little changed. 

• US equity-index futures have climbed in early Asian trading after President Donald Trump extended a deadline on aggressive European tariffs. Trump agreed to delay the date for a 50% tariff on goods from the European Union to July 9 from June 1. US tsy futures (TYM5) have weakened in early Asia-Pac dealings, with TYM5 at 109-26+, -0-08 from closing levels. Cash US tsys are closed today for Memorial Day.
• US tsys ended Friday little changed. The US 10-year yield had a range of 4.4456% - 4.5409%, closing around 4.51%.
• “In Australia, RBA Governor Michele Bullock will travel to China for meetings. While she is unlikely to reveal the content or tone of those talks, the visit perhaps underscores Australia's vulnerability should China's economy slow due to tariffs on its exports.” (per BBG)
• Cash ACGBs are little changed.
• A 25bp rate cut in July is given a 70% probability.
• The local calendar will be empty on Monday and Tuesday ahead of April's CPI on Wednesday.
• This week, the AOFM plans to sell A$400mn of the 4.25% 21 June 2034 bond on Tuesday and A$1200mn of the 4.25% 21 March 2036 bond on Friday.

In local morning trade, NZGBs are trading slightly richer.

• US tsys ended Friday little changed. The US 10-year yield had a range of 4.4456% - 4.5409%, closing around 4.51%.
• New home sales were far stronger than expected in April, at a seasonally adjusted annualised 743k (cons 695k), up from a downwardly revised 670k (initial 724k) in March.
• The dollar and US equity futures have strengthened after US President Donald Trump said he would extend the deadline for the European Union to face 50% tariffs until July 9.
• US tsy futures (TYM5) have weakened in early Asia-Pac dealings, with TYM5 at 109-26+, -0-08 from closing levels. Cash US tsys are closed today for Memorial Day.
• The local calendar will be empty for Monday and Tuesday, ahead of the RBNZ Policy Decision on Wednesday. 25bps of easing is fully priced next week meeting.
• “The RBNZ Shadow Board recommends a 25 basis point cut for the Official Cash Rate this week, the NZIER says. Almost half of the members recommended a 25 bps cut. One member recommended a 50 bps move, believing that the economy needs more stimulus. Several recommended no change, citing the recent increase in inflation and inflation expectations and heightened global uncertainties.” (per BBG)