BONDS: NZGBS: Richer With US Tsys, US/Iran HLs Remain In Focus

The USD/JPY range overnight  was 159.31-159.80, Asia is currently trading around 159.65. The pair is consolidating on a 159 handle. The fate of the USD will be closely tied to how much longer this debacle in the Middle-East continues to play out, for now I err on the side of caution until proven otherwise. I suspect the market will keep trying to push above 160 to either get a reaction so they know that's where the line in the sand is or get confirmation that the BOJ/MOF would prefer not to intervene when the demand for USD’s is so high. The BOJ will be hoping this pullback in the broader USD turns into something more, if it doesn't I suspect the dips will continue to be supported. On the day, the first support is back toward the 158.50-159.00 area. The Yen bears will be looking for another probe above the 160 area again.

• Bloomberg - “The Bank of Japan avoided fueling market expectations over the likelihood of a rate hike this month by keeping its signaling from two quarterly regional economic reports highly nuanced.”
• Options : Close significant option expiries for NY cut, based on DTCC data: 159.00($806m), 160.00($777m), 160.25($750m). Upcoming Close Strikes : 158.00($1.7b April 10), 161.00($1.21b April 9), 162.50($1.09 April 9) - BBG.
• The USD/JPY Average True Range(ATR) for the last 10 Trading days: 75 Points
• Data/Event : Household Spending, Leading Index CI, Japan sells 30-year bonds

Fig 1 : USD/JPY Spot Daily Chart

Source: MNI - Market News/Bloomberg Finance L.P

• Bank of Thailand to Sell 35 Billion Thb of 364-Days Bills
• Bank of Thailand to Sell 60 Billion Thb of 91-Days Bills
• Malaysia to Sell MYR3 Billion 2055 Bonds
• MAS to Sell 12-Week Bills
• MAS to Sell 4-Week Bills
• Philippines to Sell 3-year Bonds
• Philippines to Sell 8-year Bonds
• Bank Indonesia to Sell 32-Day Bills
• Bank Indonesia to Sell 91-Day Bills
• Bank Indonesia to Sell 277-Day Bills
• Bank Indonesia to Sell 183-Day Bills
• Bank Indonesia to Sell 365-Day Bills 

source:  Bloomberg FInance LP / MNI