In local morning trade, NZGBs are 2-3bps richer after US tsys finished the NY session stronger. US yields moved away from the recent 2024 highs assisted by technical buying, bargain hunting, and risk aversion. The $13bn of 20-year supply was especially well-received, with the result printing nearly 3bps below prevailing rates.
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1 month USD/KRW spent most of the post Asia close on the front foot. We ended the NY session near 1334.7, a won loss of 0.45%, which was the 5th straight decline. The won underperformed BBDXY gains, which were a more modest 0.18% for Monday's session. Note onshore spot ended at 1333.7 yesterday.
Aussie 3yr futures trend conditions remain bullish, despite further weakness into the Thursday close. An extension of the current bull cycle would pave the way for a climb towards the Feb 2 high of 96.540 where a break would open 96.670, the Jun 2 2023 high. The Jan 18 - 22 low at 96.120 has recently been pierced, however, short-term weakness is considered corrective above 95.750, the Nov 27 low.
USD/CNH got to fresh highs near 7.2090 in US trade on Monday, before easing modestly into the close. We track near 7.2065 in early Tuesday dealings. Dips in the pair to the 7.2020/25 region were supported in Monday trade. Onshore USD/CNY spot finished up at 7.1984, so just shy of the 7.2000 resistance point. The CNY NEER (J.P. Morgan Index) rose further to 124.33 (+0.11%), as the yuan continued to outperform the firmer USD backdrop.