APAC Daily Morning Brief

Kay Van-Petersen

Global Macro Strategist

Summary: Snapshot to APAC Morning Start

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 was down 65bp on the news.

Note we still have bond yields on USTs around similar 1.48% lvls (3yr low), yet note bunds 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 at c. -3bp.

Today:

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

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