Asia Morning FI Summary – July 4, 2013

Good morning! The Asian markets are off to what looks to be a early morning gain, despite the turmoil that is taking place in Egypt. The NZX 50 Index is up 0.161pc to 4457.93 as we write this.

Asia Day Ahead

Today we have bond auctions in Japan; a 30 year ¥600bn JGB issue as well as a 3 month  ¥3mm discount bill issue. We will have full results of the 30 year auction on our Auctions app after the full results are available.

In early morning trading, bonds in Australia look to be lower across the entire curve, with the majority of the price declines taking place in the mid to long end: 15 year is at 88.211 (-0.475) to 4.285pc (+4.5bps) while the 10 year benchmark is at 113.698 (-0.407) to 3.809pc (+4.6bps).

New Zealand is also seeing light selling in the early hours, with the 10y benchmark trading at 109.607 (-0.380) to 4.285pc for a slight yield increase of 4.5bps. The NZ 2y is trading at 105.158 (-0.088) to yield 2.98 (+4.5bps)

While we wait for other markets to come online, here’s a quick view of how bonds traded overnight in Asia-Pacific:

Singapore: 10y benchmark 102.47 (-0.37) to 2.47pc (+4.1bps), 30Y bond 93.92 (-1.80) to 3.07pc (+9.7bps). The largest jump in yield came from the 20y, which ended at 98.19 (-1.41) to 3.011pc (+10.6bps)

China: 10y benchmark 100.078 (+0.728) to 3.51 (-9bps). Sellers emerged in the 15y sector however; ending up at 99.51 (-3.0842) and a yield of 4.0 (+25bps)

Hong Kong 10y benchmark ended at 90.6 (-0.50) to yield 2.159 (+6bps)

US bond and equity markets will be closed, however we will have the results of the Spanish auctions out of Europe in addition to some commentary on the Asian and European closes. Have a great day!