Monday, June 16, 2014

CIMB Daily Fixed Income Commentary - 16 June 2014

Market Roundup
  • Short dated US Treasury yields inched up, following the comment made by BoE chief, which stated the potential interest rate hike may be earlier than market expectation. Also, players are expected to be more cautious ahead of FOMC meeting.
    • Malaysian government bonds posted little gains along the curve on the back of thin buying flows from the offshore players. The 20-year MGS yield further declined by 5bps to 4.43%, possibly due to short covering activity.
    • Thai government bond yields rose by 1-4bps along the curve, despite both local and foreign players showed strong buying interest on Friday. Aside, total trading volume edged down to Bt20 billion, from Bt25 billion a day before. Market focus was on LB176A and LB196A, which were transacted by Bt4.9 and Bt5.0 billion each.
      • IDR denominated government bond yields edged down along the curve on Friday. We suspected domestic players supported the market. Furthermore, total traded value was still hefty with an amount of IDR9.54 trillion, decreased from previous day of IDR11.23 trillion. Activities centered on the benchmark series 5-year FR69 about IDR3.55 trillion, whilst other papers showed thinner trading volume.
    • Asian credits slightly weakened ahead of week, while investors were seen with better interest on new issue and higher quality names amid quiet market. Sinopec Apr’24 widened by 1bp to 134bps, while the PTTEP perps slid from 100.74 to 100.66pts throughout the day.


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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