AUSTRALIA DATA: Weak Iron Ore Export Volumes Especially To China

The US 10-Yr (TYH6) had opened the Asia trading day at 112-09+ with volumes low, sitting below the 100-day EMA of 112-15 for the first time since July. TYH6 is up at 112-10+ in morning trade, at the approximate mid-point between the 100-day EMA and the bottom side resistance being the 200-day EMA of 111-29+

Cash sees yields 0.3 -0.5bps lower.  The 2-Yr and 3-Yr are unchanged this morning as markets are locked in for FOMC.  

• The 2-Yr is at 3.577%
• The 5-Yr is at 3.745%
• The 10-Yr is at 4.162% - 0.4bps lower
• The 30-Yr is at 4.799%  - 0.4bps lower

The 10-Yr remains in the 4.00% -4.20% range that has held in recent weeks. A more hawkish outlook from the FED could see new ranges established, particularly for the 10-yr.  

Tonight sees a US$75bn 6-week bill auction and a US$39bn 10-Yr auction.  

The PBOC kicked off the week with a modest injection yesterday ahead of a light maturity profile for 7-day repos, following the withdrawal of over CNY800bn last week.  However today the OMO sees a move back to modest withdrawal despite signs that repo rates are trying to move higher. 

• The PBOC issued CNY117.3bn of 7-day reverse repo at 1.4% during this morning's operations.
• Today's maturities CNY156.3bn.
• Net liquidity withdraws CNY39bn.
• The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
• The CFETS Pledged Repo Deposit Institutions 7 Day Weighted is at 1.40%, from prior close of 1.44%.
• The China overnight interbank repo rate is at 1.32%, from the prior close of 1.20%.
• The China 7-day interbank repo rate is at 1.43%, from the prior close of 1.46%.

• CHINA PBOC CONDUCTS CNY117.3 BLN VIA 7-DAY REVERSE REPO TUES