CIMB Daily Fixed Income Commentary - 25 September 2014

Market Roundup

• US Treasuries pared gains on the mid-week, led by profit takings alongside the stronger-than-expected new home sales data.
• MGS benchmarks hovered at prior levels amid a lack of market catalyst during mid-week, while we noted decent flows along the benchmarks. Apart from that, GII Sep’14 continued to be well bidded, and the yield inched lower by 1bp to 3.24%.
• THB denominated government bonds were under selling pressure initiated by the asset managers, which saw a net selling amount of Bt4.2 billion throughout the day. Thus, short and medium term papers pared earlier gains, and the yields inched up by 1-2bps.
• Quiet market on mid-week, as the Indonesian sovereign bonds rangebound amid thin trading volume. On-the-run series still dominated the market, as locals concentrated on the short end bucket (5-year or less).
• Asian credits dealt mixed within narrow range, as investors remained sidelined for fresh primary deals. Also, the subdued activities were also partially attributed to recent risk-off sentiment, amid concerns of weaker economic outlook in China and Japan.