Monday, March 31, 2014

CIMB Daily Fixed Income Commentary - 31 March 2014



Market Roundup
  • US Treasury yield curve steepened, as the yields for longer ends surged due to players’ profit taking activities ahead of weekend. However, 5T yield continued to rise, by 3bps to 1.75bps on Friday.
    • Malaysian government bonds moved in mixed direction, amid pretty active market. Market focus was on the new 7-year MGS benchmark.
    • THB denominated government bond yields declined along the curve, well supported by both local and foreign funds. Foreign reserve dipped to $167.7 billion on March 21, from $168.6 billion a week ago, amid weak economic outlook.
    • IDR denominated government bond market rallied on Friday. Yield curve flattened as yields inched down along shorter dated bonds, whilst yields declined significantly along longer ends. Trading volume was very hefty totaling of IDR20 trillion. Most of funds flew to benchmark series and several shorter dated off-the-run series.
    • Investors showed improved buying interest in dollar credit market, particularly seeing some interest towards the Indian banks. Newly issued IDBI Sep’19 and EXIM Bk of India Oct’19 inched up by 0.14 and 0.01pts to close at 100.95 and 100.63pts respectively. Meantime, China property credits weakened as China Resources Feb’19 and Cifi Jan’19 fell marginally by 0.03 and 0.10pts to 100.06 and 94.04pts.


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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