EM ASIA CREDIT: MTR Corporation: Ratings affirmed

In Tokyo morning trade, JGB futures are stronger and just below highs, +35 compared to overnight closing levels on Friday.

• Today, the local calendar will be empty, ahead of tomorrow's 40-year supply.
• Cash US tsys are slightly stronger in today’s Asia-Pac session after yesterday’s rally.
• Cash JGBs are 2bps lower to 3bps higher across benchmarks, with a steepening bias. The benchmark 40-year yield is 2.6bps higher at 3.397% versus the cycle high of 3.692%.
• (Bloomberg) -- Overseas investors ramped up purchases of Japanese government bonds last month, pushing their quarterly acquisitions of super-long tenors to a record, according to data released by the Japan Securities Dealers Association on Tuesday.
• (Bloomberg) -- Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust Asset Management, said "Concerns over fiscal expansion continue to simmer in the market, and in light of the election results, JGBs could come under selling pressure".
• Swaps have bull-flattened, with rates 2-3bps lower. Swap spreads are tighter.

• CHINA PBOC CONDUCTS CNY214.8 BLN VIA 7-DAY REVERSE REPO TUES

The USD/CNY fix printed at 7.1460, versus a Bloomberg market consensus of 7.1640. 

• The fixing outcome was a fresh low for this most recent cycle. We have to go back to early Nov last year for lower fixing levels.
• The error term was tighter, back at -180pips, which is consistent with fresh USD softness in recent sessions.
• USD/CNH is little changed in the first part of Tuesday dealings, last holding above 7.1700.