STIR: RBNZ-Dated OIS Extends Post-RBNZ Firming

• This morning’s OMO saw a sizeable liquidity injection and unsurprisingly bonds are rallying.
• China’s 10YR bond future is up +0.185 to 109.04 and remains firmly above all major moving averages, the nearest being the 20-day EMA of 108.73
• The 2YR bond future is up just +0.03 at 102.36 and remains below all major moving averages, the nearest being the 20-day EMA at 102.43.
• The cash market is strong also with the CGB 10yr down -1bp this morning at 1.63% with the Hang Seng and Shenzhen bourses higher whilst the CSI 300 is down marginally 

With results now coming in from Canada’s more populous provinces CBC and CTV are calling that Mark Carney will stay PM but it is still too early to say whether his Liberals will have a majority. There has been little change of seats between parties so far. Elections Canada currently has the Liberals leading in 133 districts (50.0% vote share), Conservatives in 93 (38.7%), Bloc Quebecois in 17 (4.8%) and New Democrat in 3 (4.4%). 172 seats are needed to form a majority government.

Authorities' support for the A-share market together with China’s low interest rate environment could drive up stock prices in the long run, said Wu Zhaoyin, chief investment officer at Soochow Futures. In the near term, major indexes may fluctuate as firms release annual and quarterly reports, and U.S. tariffs could be adjusted during the May 1-5 holiday period when the exchanges are closed, said Wu, noting impacts can be controlled.