EM ASIA CREDIT: Krung Thai Bank: Cuts rates from Friday
(KTBTB , Baa1neg/BBB/BBB+)
"*KRUNG THAI BANK TO CUT LENDING RATES BY 25 BPS ON FRIDAY" - BBG
State‑owned Krung Thai Bank will cut lending rates by 25bp, following yesterday’s 25bp policy rate cut by the Bank of Thailand. As noted after last month’s earnings release, rate cuts will keep pressure on net interest margins, which were 2.99% in H1 — 36bp lower year‑on‑year. Neutral for spreads.
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AUSSIE BONDS: ACGB Jun-54 Auction Goes Smoothly
Today’s auction result extended the recent trend of firm pricing for ACGBs, with the weighted average yield printing 0.24bps through prevailing mids, according to Yieldbroker. Moreover, demand improved, as reflected by a cover ratio of 3.2133x, up 2.8433x from the previous auction.
- The bond’s outright yield was 5-10bps higher from the previous auction, though it remains around 10bps below the peak reached in May.
- The 10s/30s yield curve was near its steepest level since late 2021 — a potentially supportive technical factor.
- Sentiment toward longer-dated global bonds remains cautious, which may have tempered demand.
- In the wake of the auction, the ACGB Jun-54 has traded slightly cheaper in the secondary market.
MNI: CHINA PBOC CONDUCTS CNY342.5 BLN VIA 7-DAY REVERSE REPO TUES
- CHINA PBOC CONDUCTS CNY342.5 BLN VIA 7-DAY REVERSE REPO TUES
CNH: USD/CNY Fixing Edges Higher, Error Term Slightly Tighter
The USD/CNY fix printed at 7.1498, versus a Bloomberg market consensus of 7.1740.
- Today's fixing edged higher, despite a slightly lower market consensus estimate versus yesterday. The fixing error was slightly tighter at -242pips.
- USD/CNH has maintained very low volatility so far today, holding near 7.1710 in latest dealings.
