CIMB Daily Fixed Income Commentary - 05 March 2014

Market Roundup

• US Treasuries weakened on reversal of safe haven flows as the tensions in the Ukraine cooled, namely news of de-escalation orders on Russian troops engaging in military exercise near the Ukraine border by President Putin.
• Malaysian Government Bonds continued to see generally light trading volume. Still, we witnessed sustained net selling along selected MGS tenors, specifically along the 2015-2017 maturity band. However, the newer 10-year SPK continued to rally, seen around 4.54% late on Tuesday.
• Thai government bonds firm as the Baht showed strength on Tuesday. Sentiment remained cautious ahead of the upcoming MPC meeting. Expectations of a rate cut mostly priced in, resulting in the lacklustre interest. Moreover, the prior day’s slightly higher than expected February CPI reading should ensure continued caution going forward. We noted onshore IRS rates about 1-2bps higher on the day.

·  IDR Government bond market rallied ahead of bond auction result announcement. We saw foreign names buying 10y and 15y benchmark bonds pre-auction. Post-auction market traded up again, and we saw banks did some covering.

Best Regards,
CIMB Fixed Income Research
Corporate Banking, Treasury and Markets
Tel: +603 2261 8888 | Fax: +603 2261 8705
www.cimb.com

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