SINGAPORE: No Change Expected From MAS, But Hawkish Bias Seen

TYH6 is dealing at 112-23, unchanged from closing levels in today's Asia-Pac session.

• US tsy yields finished near lows, a third straight session. 2-year was 2.5bps richer at 3.45%, holding below the 3.50% level and the richest since October 22. The 10-year yield was 2bps lower at 4.11%, the lowest since December 4.
• US stocks finished weaker as Pres Trump headlines made the rounds. Perhaps, profit taking has set in after hefty gains for the year, and the bulls have run out of AI momentum for now.
• Speaking from Mar-A-Lago, Trump discussed phone call with Russia's Putin saying, "WE HAVE A FEW 'THORNY' ISSUES WITH PUTIN ... ISSUES TO RESOLVE" Bbg -- no specifics.
• However - bit of risk-off on: "TRUMP: NOW I HEAR IRAN IS BUILDING UP AGAIN .. WILL KNOCK IRAN OUT IF THEY ARE BUILDING UP AGAIN" Bbg.

Commodity currencies underperformed the G10 on Monday with metal prices lower and equities mixed. The risk-averse yen outperformed supported by the BoJ December meeting opinions (SOO) signaling plans to increase rates further as members feel that the negative real policy rate is adding to downward pressure on the currency. The USD index finished slightly higher but had been in a narrow range of 1199.8/1202.5 through the day. 

• USDJPY trended lower through the European/US session reaching a low of 155.92, below where it was following the SOO. It finished down 0.3% to 156.05 and is currently around this level. There are no data this week.
• Aussie was an underperformer along with NOK and kiwi. AUDUSD fell 0.3% to 0.6694 after trading above 0.6700 through the APAC session reaching a high of 0.6727. It has started Tuesday around 0.6691.
• NZDUSD was down 0.55% to 0.5804 yesterday breaking below 0.5800 briefly to make a low of 0.5790. Its underperformance drove AUDNZD 0.2% higher to 1.1533 off the intraday peak of 1.1549, a new December high. It is currently lower at 1.1526. The pair has trended upwards since April as global trade risks dissipated and monetary policy expectations between the two countries diverged.
• The euro was slightly lower and the pound marginally higher against the US dollar leaving EURGBP down 0.1% to 0.8713 but has started today up to 0.8716.
• The US 2-year yield was lower. Equities were mixed with the S&P down 0.4% but Euro stoxx up 0.1% and FTSE flat. Metals corrected with gold falling 4.4% and copper down 4.6%. Oil rose with Brent +1.7% to $61.70/bbl. Iron ore remained around $105.50-106.00/t.

Sell 10,000 of TYH6 traded at 112-24, post-time 08:13:40 AEST (DV01 $671,132). The contract closed at 112-23, +0-04+ from closing levels.