Market Bizzz

The guidance “could reduce mainland capital flowing out through the bond market,” said Ken Cheung, chief Asian FX strategist at Mizuho Bank. “And it could also drive offshore yuan yields higher to support the renminbi.”

The counter is trading into a rising channel pattern constantly after it rebounded from the support zone. The strong bullish momentum on weekly scale suggests that the counter is likely to maintain bullish continuation chart formation in the coming horizon.

Regional securities have fared better even though their emerging-market counterparts have had the benefit of monetary easing as central banks start cutting rates. There are multiple factors working in favor of Asian notes including a lower correlation to US yields, support from resilient currencies and disinflationary pressures exported by China.

The decision matched the forecast of 43 economists in a Reuters survey, which also projected the central bank to stay on hold until the end of this year, before delivering a rate cut in the first quarter of 2024.

Nvidia’s forecast added to investor optimism. Big Tech and AI-related stocks saw their stock market values increase by over $70 billion, on top of Nvidia’s increased value, as their shares climbed following the report.

In options pegged to the Secured Overnight Financing Rate, a popular trade over the past week has been hedging the risk that interest rates will stay elevated through next year.