Nov. 1 (Bloomberg) -- Most currencies trade within 0.1% of yesterday’s closing levels as regional stocks retreat; bond yields rise in Japan and Thailand, while Thai swap curve flattens.
* China manufacturing PMI for October comes in at 50.2, matching median est. of economists in Bloomberg survey; reading was 49.8 in September
* U.S. Treasuries fall, with yield on 10-year notes climbing 2 bps to 1.708%; Fed reiterated yesterday it expects to reach federal debt limit near year-end; plans to sell $72b in notes and bonds next week
* Yen declines against both dollar and euro; Japanese investors bought 251.8 billion yen ($3.2 billion) in overseas bonds and notes in week ended Oct. 26, according to figures based on reports from designated major investors released by Ministry of Finance
* Australian dollar steady after China PMI data, while 10-year snap four-day rally; nation’s manufacturing shrinks for eighth month, with October index at 45.2 from 44.1 in September: Australian Industry Group and
PricewaterhouseCoopers survey
* Won trades near 13-month high vs dollar; South Korea’s consumer prices climbed 2.1% Y/y in October after 2.0% gain in September; exports +1.2% in Oct. vs est. -0.7% and revised -2.0% in Sept.; imports +1.5% vs est. +0.7% and -6.1% in Sept.
* Hong Kong dollar trades at HK$7.7501 vs U.S.counterpart, approaching stronger side of permitted convertibility range of HK$7.75 to HK$7.85 that obligates intervention; HKMA intervened for sixth time in less than two weeks yesteday to defend peg by adding HK$2.71b ($350m) to banking system
* Indonesia’s sovereign 10-year bonds had second monthly gain in October; nation’s inflation was 4.59% Y/y in October, according to median est. of economists in Bloomberg survey before data due today; September reading was 4.31%
* Thailand’s one-year swap rate unchanged, while five-year contracts drop 2 bps; nation’s consumer prices rose 3.4% Y/y in October after climbing 3.38% in September, according to median est. of economists in Bloomberg survey before official data due today
* Malaysia’s ringgit snaps two-day rally; global investors boosted holdings of Malaysian local-currency debt by 7.8% in September M/m to record 215.46b ringgit ($71b), central bank data show
WHAT THEY PREDICT:
* State Street Global Advisors prefers Philippine longer-term sovereign bonds as inflation in $225b Southeast Asian economy cools, according to Asia-Pacific head of fixed income, Kheng-Siang Ng (see story here)
* Standard Chartered says QE3 continues to sustain foreign inflows to EM bonds and expects investors to continue to search for carry trades in EM near-term as risk appetite remains weak, it writes in note
* Near-term technicals favor Australian and New Zealand currencies as well as peso, Bloomberg economist Tamara Hendersonwrites in note; DMI-14 and MACD favor AUD, NZD and PHP against USD and INR; RSI-9 and Bollinger bands set at 2 standard deviations suggest buying USD/KRW, against DMI and MACD sell signals
DEBT ISSUES:
* Genesis Power sells NZ$50m of bonds due in November 2019: Westpac statement
* EDC hires banks for tap of Kangaroo bonds due in August 2017: ANZ statement
* China Overseas marketing bond sale of up to $1b: Hong Kong Economic Journal
CURRENCY LEVELS AND TECHNICALS (as of 9:05 a.m. HKT)
* EUR/USD 1.2963; pivot 1.2976; support 1.2930; resistance 1.3005
* EUR/JPY 103.55; pivot 103.47; support 102.99; resistance 103.85
* USD/JPY 79.88; pivot 79.75; support 79.54; resistance 79.98
* GBP/USD 1.6127; pivot 1.6112; support 1.6085; resistance 1.6156
* EUR/CHF 1.2073; pivot 1.2075; support 1.2063; resistance 1.2086
* EUR/GBP 0.8038; pivot 0.8046; support 0.8018; resistance 0.8064
* USD/CHF 0.9316; pivot 0.9308; support 0.9284; resistance 0.9340
* USD/CAD 0.9997; pivot 0.9990; support 0.9965; resistance 1.0018
* AUD/USD 1.0381; pivot 1.0376; support 1.0353; resistance 1.0400
* NZD/USD 0.8222; pivot 0.8218; support 0.8206; resistance 0.8236
* USD/SGD 1.2202; pivot 1.2200; support 1.2187; resistance 1.2214
* USD/CNY 6.2372; pivot 6.2394; support 6.2350; resistance 6.2415
* USD/KRW 1,090.73; pivot 1,090.69; support 1,090.00; resistance 1,091.38
* USD/TWD 29.26; pivot 29.2493; support 29.2187; resistance 29.2907
* USD/THB 30.7; pivot 30.6900; support 30.6500; resistance 30.7300
* USD/MYR 3.0495; pivot 3.0504; support 3.0427; resistance 3.0553
* USD/PHP 41.175; pivot 41.1883; support 41.1467; resistance 41.2167
* USD/IDR 9,607.5; pivot 9,617.33; support 9,598.67; resistance 9,626.67
* USD/INR 53.814; pivot 53.9321; support 53.6567; resistance 54.0892
LATEST INTERBANK RATES (as of yesterday)
* USD 3-mo. Libor 0.313%
* China1-mo. Shibor 4.2175%
* Singapore$ 3-mo. 0.37917%
* Taiwanovernight 0.388%
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