CIMB Daily Fixed Income Commentary - 10 November 2014

Market Roundup

• US Treasuries rebounded and rallied, thanks to the weaker-than-expected nonfarm payroll number released on Friday. October nonfarm payroll report showed that a sum of 214k of jobs added, lower than 235k forecasted by economists earlier.
• Malaysian government bonds dealt mixed, amid lacklustre trading interest heading towards the release of nonfarm payroll report on late Friday. MGS Oct’19 was in the limelight, traded 2bps higher and closed at 3.64%.
• THB denominated government bonds extended losses, as players took profit after the recent rally led by speculative bets on interest rate cut. However, daily volume shrank drastically from Bt22.2 billion to Bt9.7 billion.
• It was quiet day in Indonesia government bond market. Market volume was IDR 6.18 trillion on Friday dropped from IDR 11.22 trillion on Thursday. Benchmark bonds FR70 (maturing in 2024) and FR71 (maturing in 2029) total volume was IDR 2.42 trillion.
• Asian dollar credit market saw thinner transactions on Friday, as players awaited for nonfarm payroll report before positioning into the market. Newly issued Vietnam 10-year paper was in good demand and traded at 101.38pts in secondary market, while tender orders reached $10.6 billion, for its issuance size of $1 billion. Aside, JSW Steel Nov’19 climbed from 98.77pts to 99.27pts.