HALISTER1: INSIDE ASIA: Yen Snaps 3-Day Fall as JGB Yields Rise Pre-Auction

INSIDE ASIA: Yen Snaps 3-Day Fall as JGB Yields Rise Pre-Auction

(Bloomberg) -- Yen snaps three-day drop against dollar amid broader decline in the greenback and decline in JGBs ahead of bond auction. Ringgit leads gains among other Asian currencies which were mostly mixed vs the dollar.
  • Bank of Japan board member Yukitoshi Funo says the central bank will use all three easing types to achieve price target; adds vital for BOJ to proceed with monetary easing
    • Finance Minister Aso says it may take more than three months to see negative rate effect
    • JGBs fall across curve ahead of 10-, 20- and 30-yr JGB auction today; yields on 30-yr rises 4bps after falling 12.5bps yday
    • Diet approves Makoto Sakurai as BOJ member to replace Sayuri Shirai
  • China sets yuan reference rate rate higher for first time in three days
    • Country to strengthen reform while facing challenges under “new normal”, President Xi said at a meeting Tuesday: Xinhua
    • SAFE sent questionaires to some funds participating in QDII scheme to gauge demand for overseas investment products, Reuters reports
  • U.S. Treasuries little changed, with yield on 10-year bonds at 1.948% in Asian trading
    • Data today will show U.S. new home sales at 510,000 annualized pace in February after 494,000 rate in January, according to median estimate of economists in Bloomberg survey
  • Baht set for fourth day of losses that would be longest stretch since Dec. 21
    • Bank of Thailand will keep policy rate unchanged at 1.50% today, according to 19 of 20 economists surveyed by Bloomberg; one sees a 25bps cut
    • Central bank may start investing 3%-4% of its FX reserves in overseas equities to diversify investment risk: Governor Veerathai
  • Singapore’s dollar weakens on eve of annual budget; see preview here
    • Data today will show core inflation gauge slowed to 0.3% from year earlier in February, first decline in three months and from 0.4% in January: Bloomberg survey
    • USD/SGD may advance if output remains weak
  • Ringgit gains for second day
    • Malaysia economic task force has submitted report with recommendations for addressing areas such as financial markets, real estate, foreign workers and education: PM Najib
    • Nation mandates JPMorgan, HSBC, Maybank and CIMB for global Islamic bond sale, people familiar with matter
  • Peso halts five-day gain ahead of BSP rate decision and as trade deficit hit record in Jan.
    • Philippines central bank will leave overnight borrowing rate unchanged at 4.00% today, according to all 14 economists in Bloomberg survey
    • Imports rose 30.8% from year earlier in January, most since November 2010; median estimate was for 15.6% decline; trade balance swung to deficit of $2.6b from surplus of $600m, that’s largest deficit on record going back to 1980
  • Taiwan’s dollar rises for second day
    • Data today will show island’s industrial production dropped 5.30% from year earlier in February after 5.65% decline in January: Bloomberg survey
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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8301 JP (Bank of Japan)

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Yukitoshi Funo (Bank of Japan)

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HALISTER1: SINGAPORE PREVIEW: USD/SGD May Advance If Output Remains Weak

SINGAPORE PREVIEW: USD/SGD May Advance If Output Remains Weak

(Bloomberg) -- USD/SGD could rise to 21-DMA at 1.3807 if Singapore’s industrial production contracts for a 13th straight month as economists forecast.
  • Factory output fell 1.5% y/y in Feb. following a 0.5% contraction in Jan., median est. in Bloomberg survey shows; ests. range from -12.8% to +2.0%; data due at 1 pm local time tomorrow
  • Jan. output slowed less than the median est. for a 5.1% drop, according to Feb. 26 release; USD/SGD rose 0.4% that day to close at 1.4080
  • Pair now at 1.3602 and could rise to 21-DMA in near term if weak data is confirmed
  • USD/SGD has fallen 4.1% so far this year; touched 1.3480 on March 18, lowest level since July 10
  • In related data, Singapore’s non-oil exports surprisingly rose 2.1% last month, topping median est of a 0.8% decline, data released March 17 showed; Feb.’s PMI slid to 48.5 from 49.0
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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HALISTER1: TAIWAN PREVIEW: Rate Cut May See USD/TWD NDFs Test 200-DMA

TAIWAN PREVIEW: Rate Cut May See USD/TWD NDFs Test 200-DMA

(Bloomberg) -- USD/TWD NDFs may test resistance at 200-DMA in near term if central bank lowers benchmark interest rate tomorrow, Bloomberg strategist David Finnerty writes.
  • USD/TWD NDFs now up 0.2% at 32.331; 200-DMA at 32.521
  • Most economists in Bloomberg survey expect CBC to cut by 12.5 bps to 1.50%
    • Lower rates may aid domestic economy, and export sector via potentially weaker currency
  • 4Q GDP declined 0.52% y/y and economic data in 1Q remains weak
    • Export orders fell y/y for 11th consecutive month in Feb.
    • Manufacturing PMI dropped back into contraction territory in Feb.
    • Industrial production declined for ninth consecutive month in Jan.; economists forecast that trend will continue when Feb. data released at 4pm today
  • Bloomberg survey: 22 economists expect 12.5 bps cut tomorrow, three predict 25 bps cut and one sees no change; CBC cut rate from 1.750% to 1.625% at last meeting on Dec. 17
  • USD/TWD down 0.4% at 32.410
  • NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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HALISTER1: Olympic Projects Cited in Brazil’s Carwash Corruption Probe

Olympic Projects Cited in Brazil’s Carwash Corruption Probe

Alert: HALISTER1
Source: BN (Bloomberg News)

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PETR4 BZ (Petroleo Brasileiro SA)
ODBE4 BZ (Odebrecht SA)

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Luiz Da Silva (Federative Republic of Brazil)
Marcelo Odebrecht (Odebrecht SA)
Sergio Moro (Federative Republic of Brazil)

Topics
Olympics

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UUID: 7947283