HALISTER1: Korean Won, Malaysian Ringgit Forwards Most Active on DTCC

Korean Won, Malaysian Ringgit Forwards Most Active on DTCC

(Bloomberg) -- USD/KRW non-deliverable forwards accounted for 25.3% of total volume today, according to trades reported to DTCC; USD/MYR second-most active at 20.3%, MYR/JPY third-most active at 13.0%.
  • Notional amounts traded include:
    • Total $310m+ of USD/MYR at 3.9000; matures Aug. 24
  • Total volume was $13.1b as of 2:28pm HKT; global total
yesterday was $52.5b, with USD/KRW accounting for 23.2%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER1: AUCTION PREVIEW: 30Y Netherlands Cheap, Not Expected to Swap

AUCTION PREVIEW: 30Y Netherlands Cheap, Not Expected to Swap

(Bloomberg) -- Netherlands to sell EU0.75b-1.25b of DSL 2.75% 01/2047 bonds at 11am CET. Analysts see bond as cheap vs shorter-dated peers, and vs Germany; expect support from significant upcoming redemptions.
  • ABN Amro (Kim Liu)
    • Don’t expect the bond to be swapped back; offers value vs shorter DSLs in long-end; 25s30s spread attractive vs Germany
    • 10s30s at tightest lvls of 2016, though far from lows of 34bps in April; increased QE may flatten 10s30s further
  • JPMorgan (Gianluca Salford)
    • Auction bond has underperformed significantly vs DSL 01/2042 over past month, now pick up of almost 10bps, close to the highs of last year
    • Cross market, 10Y+ sector in core space is in general cheap vs. Germany
  • Rabobank (Richard McGuire)
    • Central bank efforts to stimulate a recovery will be self-defeating, only lead to more stimulus; favor flatter core curves, see auction as opportunity to extend duration
    • 25s30s DSLs trade ~5bps cheaper vs Germany; favor owning auction bond vs German 2046
    • Auction should find support from EU11.4b of Dutch redemptions, due on April 15
  • UniCredit (Elia Lattuga)
    • DSL Jan47 has cheapened, currently at attractive lvls vs 01/2042; redemptions of EU13.7b from old DSL, as well as EU22b from Germany, Finland should supportive
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
3584485Z NA (ABN AMRO Group NV)

People
Kim Liu (ABN AMRO Group NV)
Elia Lattuga (UniCredit SpA)
Gianluca Salford (JPMorgan Chase & Co)
Richard McGuire (Rabobank International)

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UUID: 7947283

HALISTER1: JGBs Rise; Outcome of 10-Year Linker Auction ’Good’: UBS

JGBs Rise; Outcome of 10-Year Linker Auction ’Good’: UBS

(Bloomberg) -- Results of Japan’s auction of 400b yen ($3.7b) in 10-year inflation-linked bonds were “good,” as issue price was higher than market consensus, says Yusuke Ikawa, a salesperson at UBS Knowledge Network, in an interview.
  • These inflation-linked securities “come with a deflation floor” and are “undervalued” given potential impact from a planned sales tax increase, says Tokyo-based Ikawa; click here for auction’s history
  • For other JGBs, profit-taking selling interest that typically occurs at start of Japan’s fiscal year is rather weak, helping to push yields lower: Ikawa
  • 10-year yield down 0.5 bp to -0.095%, 20-year yield down 0.5 bp to 0.310% and 30-year yield down 0.5 bp to record low 0.390%
  • NOTE: Japan’s inflation-linked bond auction draws higher bid-cover ratio
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Yusuke Ikawa (UBS Asset Management Japan Ltd)

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UUID: 7947283

HALISTER: CIC, Ormat, Malakoff Said to Weigh Bids for Chevron Asian Assets

CIC, Ormat, Malakoff Said to Weigh Bids for Chevron Asian Assets

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
CHIVCZ CH (China Investment Corp)
CVX US (Chevron Corp)
ORA US (Ormat Technologies Inc)
AP PM (Aboitiz Power Corp)
EDC PM (Energy Development Corp)

People
Erramon Aboitiz (Hedcor Inc)
Saratoga Investama Sedaya (Pt Saratoga Investama)

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UUID: 7947283