Tuesday, March 18, 2014

CIMB Daily Fixed Income Commentary - 18 March 2014

Market Roundup
  • US Treasuries weakened ahead of FOMC meeting, as players took profit after last week rally. Market is anticipating Fed members to provide qualitative based forward guidance, as the quantitative economic releases may distort the policy stance.
    • Malaysian government bond yield curve steepened, as yields edged down along the shorter ends amid quiet market. Trading volume moderated to RM1.7 billion on Monday, as players were sidelined ahead of FOMC meeting, as well as waiting for 10-year GII auction announcement, which is estimated to be around RM3-3.5 billion.
    • Thai government bonds strengthened, led by strong support from the local players, as local net buying amounted to THB4.7 billion.
    • IDR denominated government bond yields dipped along the curve. Trading volume was hefty, amounted to IDR11.50 trillion. Trading activities focused on shorter dated papers and off-the-run series such as 1-year FR27 and 5-year FR69. Meantime, the benchmark series were transacted with thinner volume as players confined their transactions on the benchmark series ahead of auction on Tuesday.
    • Asian dollar credits garnered little gains amid thinner flows of transaction in the market, as investors took cautious move ahead of this week FOMC meeting, as well as concerns on the Crimea referendum voting result which favoured Russia.


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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