Market
Roundup
- US Treasuries posted gains along the curve, with 5T and 10T garnered the most at 2bps each. Front end of the curve was well supported after seeing thinner selling pressure over the week, amid short term treasury auctions.
- Ringgit denominated government bonds were actively traded ahead of weekend, as trading volume surged to RM3.3 billion. Meanwhile, players were seen bidding down the shorter dated papers, particularly GII Dec’14, MGS Apr’14 and Sep’15.
- Thai government bond yield curve marginally steepened as players were seen better buying along the shorter ends of the curve, whilst trading volume fell decently by 15% to THB1.02 trillion on Friday. Market focus was on the short dated CB14514A, which contributed THB25.5 billion trading volume.
- IDR denominated government bond moved positively on Friday, due to the improved net buying interest across all tenors. Although still no strong drivers, market expectation of slower inflation rate in April and surplus trade balance in March drove the market higher on the day. In addition, transactions were quite active in the bond market with total volume of IDR9.66 trillion, which focused on 10-year FR70 (IDR2.55 trillion) and 20-year FR68 (IDR1.20 trillion).
- Asian dollar credits suffered losses due to the large supply of new issues over the week. Woori Bank Apr’24 widened by 10bps from its offering yield to 218bps, whilst CNOOC with the similar tenure further widened by 2bps to 165bps on Friday. With the anticipated incoming supply in primary market, new issues were likely to remain under pressure in the short term.
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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