Happy Thu! - APAC Daily Call Thu 29 Aug 2019
O/N & Levels:
Mnuchin talking 50-100yr bonds again, mentions no plan yet to intervene in the USD. Big miss in US oil inventories -10m a vs. -2.8m e, popping crude up by 165bp. Bojo trying to suspend UK Parliament from Sep 12 - Oct 14, will likely be challenged by courts. Probably a strategy on his part on potential brexit negotiations. Cable down 65bp on the news.
Note we still have bond yields on Insta around similar 1.48% lvls (3yr low), yet note binds at -71bp are all time lows... As are a lot of other bond yields globally. The US is behind the curve. Speaking of the curve, 2/10s are now inverted.
Data light, really all about US 2Q GDP reading at 2.0%e. GER flash CPI may also get some interest
Yuan Fixing will be key, they only bumped it up by 4bp o/n vs. the +34bp on Tue
And again all about Sep 1st implementation & potential noise around that