MYR: Ringgit Underperforms Friday

The TYU5 range has been 112-03+ to 112-05+ during the Asia-Pacific session. It last changed hands at 112-04, down 0-02+ from the previous close. 

• The US 2-year yield has edged lower trading around 3.6557%, down 0.02 from its close.
• The US 10-year yield has moved higher trading around 4.267%, up 0.01 from its close.
• This has seen the 2s10s steepen in Asia, +2.30 at 60.347.
• 10-Year Yields found buyers above 4.30% again overnight. While the 4.35% area continues to hold, bounces should be met with demand, with the 30-Year taking the brunt of the selling related to challenging the Fed independence. First target is the recent lows around 4.18% then the bottom of the range towards 4.10% comes back into focus.
• Andrew Ackerman on X: “The Fed has deferred any decision on Cook's status because they are expecting a quick decision from a court on Cook's coming request for a judicial order/TRO, according to a Fed official. Would note the Fed has no board meetings scheduled for this week, while Cook is in limbo.”
• ISABELNET on X: “10Y Yield: When the Fed prioritizes the labor market over inflation, it can reduce the immediate risk of recession by sustaining employment. However, this is likely to increase inflation expectations and push yields higher”
• RenMac on X: “Consumers see increasing slack in the jobs market. The Labor Differential continues to soften, falling to a fresh low of 9.7 in August. In particular, we saw a notable jump in those saying “jobs hard to get.” See Fig.1 Below
• Data/Events:  MBA Mortgage Applications

Fig 1: 10-Year US Yield 2H Chart

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

• China's bond futures are edging lower in the morning trade with the 10-year leading.
• The 10-year is down -0.05 at 107.88, below all major moving averages.  The nearest being the 20-day EMA of 108.11.
• The 2-year bond future is lower by -0.01 at 102.37, as it edges further lower having touched the 20-day EMA in recent days. 

• Government bond yields are steady with the CGB 10yr at 1.77%

NZ government bond yields sit up from earlier lows. We opened with a softer tone, after US yields fell in Tuesday trade. However, 2yr to 10yr tenors are now only down marginally for the session. The 2yr is back to 2.98%, the 10yr near 4.36%. The 15 and 30yr bonds are off around 1bps. Spill over from the Australian monthly CPI beat, which aided firmer Aussie bond yields, has likely been in play. NZ 2yr swap rates have edged up slightly, last around 2.76%. 

• Local news flow has been light. Via BBG: "New Zealand will introduce a Business Investor Visa that will provide a pathway to residence for business migrants who are ready to invest in, operate and grow established businesses, Immigration Minister Erica Stanford says in emailed statement." The scheme will be open to applications from this November.
• While the NZ FinMin commented on easing the pathway for new supermarket operators to set up in the country, in order to boost competition in the space.
• Tomorrow on the data front, we have July filled jobs, along with the August ANZ business confidence/activity prints.