EM ASIA CREDIT: Shandong Gold (SDGOLD, NR/BBB-/NR) new $ deal priced

BoJ Governor Ueda has commented to local newspaper Sankei, noting the central bank will have to monitor the tariff impact and may need to respond if the economy is impacted. Below are some of the key takeaways, which come via Reuters. 

• "Bank of Japan Governor Kazuo Ueda said the central bank may need to take policy action if U.S. tariffs hurt the Japanese economy, the Sankei newspaper reported on Wednesday"
• "Since February, risks surrounding U.S. President Donald Trump's policies have "moved closer towards the bad scenario" the BOJ had envisioned, Ueda said in an interview"
• "Ueda said the BOJ will continue to raise interest rates "at an appropriate pace" if economic and price developments move in line with its projections.
• "But we will scrutinise without pre-conception the extent to which U.S. tariffs could hurt the economy," he said. "A policy response may become necessary. We will make an appropriate decision in accordance with changes in developments." (Rtrs)
• The next BoJ policy meeting concludes in at the start of May. Market expectations for rate hikes have been sharply scaled back over the past month in response to President Trump’s announcement of reciprocal tariffs. Markets now assign a 0% probability to a 25bp hike at the May meeting,
  with a cumulative 50% chance not priced in until December.
• This marks a significant shift from just a month ago, when a full hike was priced by October and a 50% probability was expected by June.

• MNI JAPAN FEB CORE MACHINE ORDERS +4.3% M/M; JAN -3.5%

ACGBs (YM -2.0 & XM +0.5) are slightly mixed after US tsys finished modestly richer, with curves flatter. Cautious early optimism over tariff relief (or delay) for autos buoyed rates and stocks in early trade, evaporated in the second half, markets wary of tariff-related headline risk.

• The Empire manufacturing survey improved by more than expected in April to -8.1 (cons -13.5) after a weak -20.0 in March although forward-looking aspects in particular make for a sour reading.
• (AFR) “Earlier this month, a dozen were tipping the Reserve Bank of Australia would keep rates on hold in May. Today, just four are sticking with that view.” (see BBG link)
• Cash ACGBs are slightly mixed with the AU-US 10-year yield differential at +1bp.
• Swap rates are little changed.
• The bill strip pricing is -1 to -4.
• RBA-dated OIS pricing is 1-5bps firmer across meetings today. A 50bp rate cut in May is given a 30% probability, with a cumulative 117bps of easing priced by year-end (based on an effective cash rate of 4.09%).
• Today, the local calendar will see the Westpac Leading Index, ahead of March's Employment Report on Thursday.
• The AOFM plans to sell A$1000mn of the 3.50% 21 December 2034 bond today.