CIMB Daily Fixed Income Commentary - 15 October 2014

Market Roundup

• Concerns on the weaker global growth prospect sent the US Treasury yields lower, alongside the fund outflows from the global equity markets.
• Malaysian government bond yields further dipped on Tuesday, while market was noted with heavy flows amounting to RM9.1 billion, supported by the 15-year MGS auction and MGS Aug'15. On top of that, players continued bidding on the 10-year Gii. Hence, see the yield ended 1bp lower at 4.10%.
• Thai government bond benchmark yields grinded lower by 1-4bps along the curve, guided by the persistent buying activities. LB196A was actively transacted totalling Bt9.4 billion, while traded 2bps lower at 2.72%.
• Indonesia government bond market rallied at auction day as government received huge incoming bids, 32.85T in total. Government issued 50% more from 8T indicative target, with 10yr issued at yield 7 bps below market level, causing market to chase FR70 in the market together with longer dated bonds, sending down yield curve 13-17 bps on belly to long end.
• Asian dollar credits strengthened on improved buying interest on Tuesday. Thai Oil Jan’23 and Kasikorn Bank Oct’19 tightened by 7 and 8bps to 154 and 123bps respectively. Aside, China/HK names also firmed on better sentiment, as Agile perp rebounded from the low and traded higher to 68.30pts, while Longfor Jan’23 inched up to 94.08pts, from 93.99pts earlier.