EM ASIA CREDIT: Q1 Results: Samsung (SAMSNG, Aa2/AA-/AA-) - Beat
Apr-30 00:38
"*SAMSUNG: GLOBAL TRADE TENSIONS MAKE IT HARD TO PREDICT FUTURE" - BBG
- Samsung Electronics has reported its Q1 operating profits (prelims out 8th April), more or less in line with the previous year, at KRW6.7T and above expectations (KRW6.1T).
- In terms of business segment, the main underperformer was in Memory, where operating profit declined to KRW1.1bn versus KRW1.9bn the year ago period, on the back of export controls. Overall neutral for spreads.
- The conference call will begin shortly, and it will be interesting to hear insights on tariffs. The Americas region accounts for around 39% of revenues, with manufacturing sites for example in Mexico (make TVs, 10% of revenues) and in Vietnam (make Smartphones, 38% of revenues).
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US TSYS: Cash Bonds Richer To Start The Week
Mar-31 00:17
TYM5 is 111-17+, +0-11 from closing levels in today's Asia-Pac session.
- According to MNI's technicals team, Jun'25 10Y futures have breached initial technical resistance at 110-26 (Mar 25 high). The medium-term trend condition is bullish, the first key resistance is located at 111-17+, the Mar 20 high.
- A strong risk-off tone has extended into today’s Asia-Pac session ahead of this week's Trump Tariff "Liberation Day" rollout on April 2, not to mention Friday's employment data for March.
- Cash US tsys are 5-6bps richer across benchmarks, with a slight steepening bias, as concern over the health of the US economy fuels demand for haven assets.
- "US Treasuries have outperformed stocks this quarter, heading for a more than 2% gain, while the equity benchmark S&P 500 fell about 5%. It marks the first time since the onset of the pandemic in March 2020 that stocks fell, and bonds rose in a three-month period." (per BBG)
AUSSIE BONDS: Solid Absorption of May-28 Supply With More Demand Present
Mar-31 00:11
The latest round of ACGB May-28 supply sees the weighted average yield print 1.15bps through prevailing mids (per Yieldbroker), extending the recent trend of firm pricing at ACGB auctions.
- Moreover, the cover ratio jumped to a robust 4.4250x from 3.5400x at the previous outing.
- As highlighted in the preview, the outright yield was 15-20bps higher than the previous but around 55bps lower than the cycle peak in early November last year.
- Additionally, market expectations for RBA easing in 2025 have become more aggressive ahead of tomorrow’s RBA Policy Decision. While a 25bp rate cut in April is given only a 5% probability, a cumulative 70bps of easing is priced by year-end.
- Also on the positive side, it's important to note that the May-28 bond was included in the YM basket and that sentiment towards global bonds has improved recently.
- There has been no notable movement in the cash line in post-supply dealings.
AUSSIE BONDS: ACGB May-28 Auction Results
Mar-31 00:03
The Australian Office of Financial Management (AOFM) sells A$600mn of the 2.25% 21 May 2028, issue #TB149:
- Average Yield (%): 3.6498 (prev. 3.5038)
- High Yield (%): 3.6525 (prev. 3.5050)
- Bid/Cover: 4.4250x (prev. 3.5400x)
- The amount allotted at the highest accepted yield as a percentage of the amount bid at that yield (%): 72.4 (prev. 96.4)
- Bidders 37 (prev. 32), successful 11 (prev. 12), allocated in full 7 (prev. 7)
