Kaohoon Morning Brief – 28 March 2022

1) Ukraine is preparing to discuss neutrality with Russia

Ukrainian President Volodymyr Zelenskyy said that Kyiv is preparing to discuss adopting a neutral status as part of a peace deal with Russia, according to his 90-minute video while adding that any agreement would need to be guaranteed by third parties and put to a referendum.


2) BOJ offers to buy unlimited 10-Y bonds at 0.25% fixed rate

The Bank of Japan said on Monday that the central bank is offering to buy an unlimited amount of 10-year Japanese government bonds at a fixed rate at 0.25%.

The announcement by the central bank was made early this morning as the yield on benchmark 10-year JGBs approached the upper limit of the bank’s target range of 0.25%, currently stands at 0.24%. The move by BOJ is to defend its implicit yield cap for the second time this year.


3) PBOC conducts 150 billion yuan OMO via 7-day reverse repo

The People’s Bank of China conducts 150 billion yuan open market operations via 7-day reverse repo, starting today, as 30 billion yuan is due today. The net injection will be 120 billion yuan. This is the single-day injection since February 28 as the Chinese central bank is trying to maintain the liquidity steady moving toward the end of the first quarter of 2022.


4) Shanghai’s city enters lockdown after a rise of Covid cases

China’s Shanghai City is under a partial lockdown after reporting more than 10,000 asymptomatic Covid-19 cases over the last 8 days. Shanghai’s Pudong New Area, Fengxian District, Jinshan District, Chongming District and Pujiang Town are among the first batch of areas to be locked down.