1. The bond yields in main western countries somewhat declined amid disappointed economic indicators in US as NY Empire state index tumbled to 6 year low, while NAHB index rose, and weakness in equity market.
See other posts written today.
2. The effect of meeting lag span with positive cloud in a German Bund 10 year chart was maybe very short as the yield dropped yesterday. However, it will likely remain a range movement during a few days, so I'm reluctant to buy long-end treasuries additionally yet.
3. In Thailand, an explosion of bomb which killed 21 people as known, caused domestic weakness in equity and FX market. Someone suspects the government as a implicit leader of this tragedy.
4. PBOC continued to hold CNY fixing rate with extremely small adjustment. But, Asian equity markets tumbled in line with Thailand and Chinese SHCOMP index drops.
5. SHCOMP tumbled more than 6% today after -8.5% drop in 27th July as the expectation of state support declined as market participants said. They pointed somewhat robust property price data could lead the limit of additional market support measures or remaining current tools.
6. Chinese cities where home prices rose exceeded those where declined for the first time in 16 months in July, as authorities removed some property curbs and interest rate fell. New-home prices rose in 31 cities of 70, from 27 of the previous month. The average price of 70 cities rose 0.17% from June, gaining for a third consecutive month.
This seems an irony because real Chinese economy has been moved with property prices face to face... Now seems too early to suggest one-side direction of markets price...
7. In Korean treasury bond market, foreign investors have sold cash bonds recently, while continue to buy futures especially in 10y tenor. Market players had thought cash bond market and futures market was seperated for foreign investors because oversea's mutual funds were main in cash bonds and maybe hedge funds had dominant positions in futures market for an off-shore. But we maybe should change the thought. There has been movements to transfer cash bonds to futures positions as the drain liquidities in cash bonds market is threatening participants. If then, the fear about the outflow of foreign investors in Korean bond market maybe overstates despite soaring KRW exchange rate against USD.
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