Thursday, March 20, 2014

CIMB Daily Fixed Income Commentary - 20 March 2014

Market Roundup
  • US Treasury yields surged, as Yellen stated in the FOMC meeting that Fed may hike policy rates around six months after the monthly bond purchases programme is fully winded down. 5T rose significantly by 16bps to close at 1.71% amid the knee-jerk selling pressure.
    • Malaysian government bond yields stood firm at previous levels, whilst seeing range-trading activities along the curve. Market focus was on GII Mar’21, MGS Mar’17 and Jul’24 amid active market on midweek.
    • Thai government bond yields moved in mixed direction, amid better buying interest from foreign players, due to the stabilizing political situation.
    • IDR denominated government bonds booked losses on Wednesday. Players showed hefty trading activities, still concentrating along longer dated series. Volume was unchanged totaling IDR17 trillion. We saw domestic and foreign players showed net selling interest on the day, pushing the market down. They were awaiting FOMC meeting whilst taking profits after significant strengthening in more than two weeks.  Meanwhile, Bank Indonesia was seen conducting buyback of shorter dated bonds.
    • Asian dollar credits were slanted to the negative side, particularly Chinese property sector credits, amid concerns of more default cases post Zhejiang Xingrun news in prior day. Evergrande Oct’18 was traded lower to 96.63pts, from 97.47pts, whilst China Resources Feb’24 fell to 101.57pts, from 102.04pts on Tuesday.


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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