CHINA RATES: China Repo Rates Rise On Friday
The seven-day deposit reverse repo average across China's interbank market was at 2.2563% on Friday, higher than the close of 2.2492% on Thursday, according to Wind Information. The overnight deposit reverse repo average was last at 1.9584%, higher than the previous 0.8505%.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
NZD: Firmer, Consolidating Tuesday's Gains
NZD/USD prints at $0.6255/60, ~0.1% firmer in today's trading.
- The pair is consolidating yesterday's gains, firming in early trade as US equity futures and regional equities rise boosting risk sentiment.
- We currently sit a touch below the 200-Day EMA ($0.6269), a break through here re-establishes the uptrend for bulls.
- AUD/NZD prints at $1.0700/10, ~0.3% softer today. A weaker than expected CPI print from Australia is weighing on the cross.
- Cross asset wise, E-minis are ~0.4% higher and the Hang Seng is up ~2.5% after Alibaba rose 14% in the US on news of an overhaul that will see the company split into six business units. BBDXY is ~0.1% firmer.
- Early tomorrow morning Feb Building Permits will cross, also on the wires is the March ANZ Business Survey.
JPY: USD/JPY Plays Catch Up To Yields, Better Equity Tone Pushes Yen Crosses Higher
USD/JPY sits near session highs. The pair last around 131.60/65, +0.55% higher for the session so far. This puts us near recent highs around the 131.70/75 region. Beyond that is the March 22 high near 133.00.
- USD/JPY has played some catch up with the firmer US yield backdrop, closing some of the wedge that we highlighting the morning, which has emerged over recent sessions.
- Further gains in US yields in the first of the session (2yr +3bps to near 4.11%) has helped as well.
- Spill over from the firmer equity backdrop has likely weighed on yen from a cross standpoint as well. Moves are being led by HSI and HS TECH post the Alibaba re-organization announcement. However, US futures are also higher, last near +0.40% for eminis and Nasdaq futures (positive guidance from Micron helping in the tech space).
- AUD/JPY is back to 88.20/25, despite the earlier AU CPI miss. Note the 20-day EMA comes in at 88.82. NZD/JPY is close to 82.40 eyeing a test of recent highs around the 82.50 region.
US TSYS: Light Pressure On Equity Bid
Tsys come under some light pressure on the aforementioned move higher in e-minis, with TU & TY futures cracking through their respective Tuesday lows, although broader ranges remain somewhat contained. Note that there hasn’t been any fresh headline flow per se, but Alibaba-related spill over into the wider Chinese tech sphere and Micron’s better than expected guidance (released after hours on Tuesday) are seemingly the drivers for equities in early Asia-Pac trade. Wider cash Tsys run 3bp cheaper to 0.5bp richer as the curve twist flattens, pivoting at the 20-Year point.
