To read the full report, data and graphs go to http://www.asianbondsonline.adb.org/newsletters/abowdh20140922.pdf?src=newsletter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx
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News Highlights - Week of 15 - 19 September 2014
Last week, the People’s Bank of China (PBOC) engaged in a
series of actions to increase liquidity in the market. The PBOC provided a total of CNY500 billion
through 3-month, low-interest rate loans for CNY100 billion each to Industrial
and Commercial Bank of China, China Construction Bank, Agricultural Bank of
China, Bank of China, and Bank of Communications. In addition, the PBOC also
sold CNY10 billion worth of repurchase agreements at a rate of 3.5% on 18
September, compared with a rate of 3.7% in its prior auction on 16 September.
* The Bank of
Thailand’s Monetary Policy Committee decided on 17 September to maintain the
policy rate at 2.00%. In its Monetary Policy Committee meeting held on 18
September, Bank Negara Malaysia decided to keep its overnight policy rate
steady at 3.25%.
* Consumer price
inflation in Malaysia inched up to 3.3% year-on-year (y-o-y) in August from
3.2% in July, due to price increases in food (3.3%), transportation (5.5%),
restaurants and hotels (5.1%), and housing costs (3.4%). In the Republic of
Korea, producer prices fell 0.2% y-o-y in August, after gaining 0.2% in the
preiovus month.
* Japan's
merchandise trade deficit narrowed to JPY948.5 billion in August from JPY971.4
billion a year earlier. Goods exports declined 1.3% y-o-y to JPY5.7 trillion,
while imported goods declined 1.5% to JPY6.6 billion. In Singapore, non-oil domestic exports (NODX)
grew 6.0% y-o-y in August, after falling 3.3% a month earlier, due mainly to
increases in non-electronic NODX.
* In the Philippines,
personal remittances from overseas Filipinos rose 7.1% y-o-y in July to reach
US$2.3 billion. Retail sales in Singapore climbed 5.5% y-o-y in July compared
with 0.4% growth a month earlier, boosted by a rise in vehicle sales.
* Over-the-counter
bond trading volume in the Republic of Korea stood at KRW499.9 trillion in
July, according to data from the Korea Financial Investment Association, which
was up KRW30.0 trillion from the previous month, but down KRW19.4 trillion from
a year earlier.
* Last week,
Honghua Group, an oil rig equipment provider from the People’s Republic of
China (PRC), raised US$200 million from a 5-year bond sale at a coupon rate of
7.45%. Korea Western Power Company priced a US$300 million 5-year bond at a
coupon rate of 2.625% last week. Prueksa Real Estate in Thailand sold THB2.0
billion worth of 2.75-year bonds at a coupon rate of 3.61%, and another THB2.0
billion worth of 3.5-year bonds carrying a 3.80% coupon.
* Government
bond yields fell for all tenors in the PRC, due to the PBOC’s liquidity
injection, while yields for most tenors fell in the Republic of Korea,
Malaysia, and Viet Nam. On the other hand, yields rose for most tenors in Hong
Kong, China and Singapore in response to US yield movements. Yields also rose
for most tenors in Indonesia on the back of foreign outflows in expectations of
a rise in US policy rates. Yield movements were mixed in the Philippines and
Thailand. The spread between 2- and 10-year bonds widened in Hong Kong, China;
the Republic of Korea; the Philippines; and Singapore; and narrowed in all
other emerging East Asian markets.
* The September
issue of the Asia Bond Monitor (ABM) will be released on 23 September in
Beijing and will available for download on the AsianBondsOnline website.
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