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With tariff headlines dominating, India is considering lowering tariffs on US agriculture products as strong inflows continue into the country.   Taiwan and South Korea enjoyed a short respite in flows, only for that to turn significantly negative again with Indonesia and Malaysia out.   

• South Korea: Recorded outflows of -$513m Friday, bringing the 5-day total to -$228m. 2025 to date flows are -$4,095m. The 5-day average is -$46m, the 20-day average is -$75m and the 100-day average of -$93m.
• Taiwan: Had outflows of -$1,028m Friday, with total outflows of -$2,607m over the past 5 days. YTD flows are negative at -$17,432. The 5-day average is -$521m, the 20-day average of -$614m and the 100-day average of -$255m.
• India: Saw inflows of +$947m as of the 27th, with a total inflow of +$3,231m over the previous 5 days. YTD outflows stand at -$12,796m. The 5-day average is  +$646m, the 20-day average of -$14m and the 100-day average of -$144m.
• Thailand: Recorded outflows of -$67m yesterday, totaling -$121m over the past 5 days. YTD flows are negative at -$1,128m. The 5-day average is -$24m, the 20-day average of -$30m the 100-day average of -$18m.
• Philippines: Saw inflows of +$1m yesterday, with net outflows of -$34m over the past 5 days. YTD flows are negative at -$214m. The 5-day average is -$7m, the 20-day average of +$2m the 100-day average of -$7m.

The Japanese Ministry of Finance (MoF) will today sell Y2.6tn of 2-Year JGBs. The MoF last sold 2-year debt on 27 February 2025.

• Currently, the 2-year yield stands slightly higher than last month’s outing, hovering just below the highest level since 2008 set last week.  
• The 2/5 and 2/10 yield curves are 5-10bps steeper compared to the previous month's auction.
• Given these dynamics, it remains uncertain whether today’s elevated 2-year yield will be sufficient to attract strong demand in the auction.
• Results are due at 0335 GMT / 1235 JST.

The Japanese Ministry of Finance (MoF) will today sell Y2.6tn of 2-Year JGBs. The MoF last sold 2-year debt on 27 February 2025, the auction drew cover of 3.1637x at an average yield of 0.826%, an average price of 99.948, a high yield of 0.833%, a low price of 99.935, with 62.4996% of bids allotted at the high yield.

• Last month’s 2-year auction saw a significant tapering in demand, with the cover ratio falling to 3.1637x from 4.06x and the auction tail lengthening compared to the previous month.
• Aligning with that result, this month’s 5-year auction showed weak demand metrics, with the auction price failing to meet expectations, the cover ratio declining to 3.1658x from 3.8158x and the auction tail lengthened to 0.07 from 0.03.
• Results are due at 0335 GMT / 1235 JST.