Thursday, April 24, 2014

CIMB Daily Fixed Income Commentary - 24 April 2014


Market Roundup
  • US Treasury curve continued flattening on midweek, as the longer ends remained upbeat and posted little gains. At this juncture, the shorter ends were still under pressured, which may attract some buying-on-dips interest if the yields further edge up ahead of weekend.
    • Malaysian government bond market was quiet as players remained sidelined. On the flip side, we noted some local funds switching from MGS Sep’21 to some off-the-run papers for better yield pickup on Wednesday.
    • Thai government bond yields dipped amid solid buying interest from both local and foreign players, whilst asset managers continued to be the largest group of net buyers, amounted to THB9.4 billion. Despite that, trading volume fell by 8% to THB1.04 trillion on midweek, with players were seen actively trading on LB176A and BOT157A.
    • IDR denominated government bond yields inched up on Wednesday. Meantime, rupiah surged higher to 11,600 on the day amid foreigners’ sell-off pressure. In general, the bond market was muted as the benchmark series were thinly traded, whilst shorter dated papers such as new series namely 3-year SR006 still attracted quite big chuck of volume on the day. Trading volume moderated to approximately IDR7 trillion, from previous day of IDR11.60 trillion.
    • Asian dollar credit market was relatively active, led by the new issues flew into the market. 5.5-year Union Bank of India tightened by 5bps from the offered yield, whilst Kasikornbank with the similar tenure was seen quoted firm around 185bps. Aside, Sinochem maturing 2019 widened by 1bp to 156bps.


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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