CIMB Daily Fixed Income Commentary - 09 September 2014

Market Roundup

• While there was a lack of economic indicators to guide the market, US Treasuries posted losses on Monday, ahead of series of auctions scheduled this year.
• MGS benchmarks were left pretty unchanged, amid quiet trading session on Monday, as total trading volume shrank drastically to RM316 million. Players stayed sidelined amid cautious sentiment heading towards the incoming MPC meeting on Sep 18.
• Thai govvies posted gains along the curve on Monday, led by buying-on-dips activities. Elsewhere daily volume surged to Bt11.6 billion, from Bt6.3 billion recorded on Friday, while short dated 3-year benchmark was actively transacted at Bt2.3 billion. Players are expecting the BoT to conduct a reopening for LBA37DA, with a size of Bt8 billion, which is scheduled on Sep 10.
• IDR denominated government bonds booked losses as players took profits after moving positive significantly during last week. The weakening occurred particularly along long term benchmark series such as 10-year FR70 and 15-year FR71. Meantime, trading transactions focused on four benchmark series and still relatively active with total volume of IDR9.80 trillion, but thinner if compared with previous day of IDR16.65 trillion.
• Asian dollar credits moved in narrower range, amid thinner trading activities on Monday. China Taiping perp inched up to 100.92pts, from 100.91pts recorded last week, while Haitong Sep’19 was traded tighter to 240bps, 15bps lower from the issue spread.