CIMB Daily Fixed Income Commentary - 23 September 2014

Market Roundup

• US Treasuries traded firmer, guided by mild buying interest post FOMC meeting. However we saw the buying momentum slowed on Monday.
• MGS benchmarks ended firmer, as players resumed buying activities post MPC meeting. However, we are surprised to see that trading volume was thinly recorded at RM625 million, in contrast to RM4.5 billion garnered last Friday.
• Thai government bonds were actively transacted at about Bt15 billion, improved from Bt13 billion recorded on last Friday. Meanwhile we saw the government bond yields dipped by 1-3bps, supported by better bidding interest particularly along the front end of the curve. LB196A printed decent volume of Bt4.5 billion, while yield closed 1bp lower at 2.97%. On top of that, Thai IRS curve shifted lower, following the positive movement of sovereign yield curve.
• Quiet day in bond market, generally market traded in range from opening until noon. Locals sold light amount of 10yr and 20yr benchmark bonds, however market well supported, bid on 10yr especially emerged although in yield +6 bps higher than opening.
• Quiet market on Monday, as investors stayed at the sideline waiting for fresh primary deals this week. Dollar credits dealt mixed, as investors were expecting a flat China Manufacturing PMI in the month of September. New issue FWDINS Sep’24 inched up to 100.03pts, from 100.00pts recorded on Friday, while Chong Hing Bank perp edged lower from 99.92pts to 99.89pts.