Equities began the week on a firm note in the Asia Pacific region. The gained more than 2%, and the profit-taking seen in China ahead of the weekend was a one-day phenomenon. The rose 1.8%, and the Shenzhen Composite surged 3.5%. Taiwan and South Korea markets also rallied more than 1%. European and US stocks enjoy more modest gains of around 0.5%-0.6%. Benchmark 10-year yields are mostly 2-3 bp higher, though the US is a little softer around 64 bp. European sovereigns are expected to sell around 36 bln euros of bonds this week, while there may be $20 bln investment-grade bonds coming to market from US names this week.
The is narrowly mixed. The Swedish , , , and are firmer, while the Norwegian krone, , and are nursing small losses. Emerging market currencies are similarly mixed, leaving the JP Morgan Emerging Market Currency Index virtually flat after rising by about 0.35% last week.
has come back firmer after slipping in the last couple of sessions and is…