CIMB Daily Fixed Income Commentary - 18 November 2014

Market Roundup

• US Treasuries closed within a tight range as players digested economic numbers out of Japan and the US. Treasuries had started off with gains in Asian trading earlier as Japan’s data showed GDP contraction of 1.6% qoq annualized in 3Q2014 against 2.2% consensus and 7.3%the prior quarter placing the economy in defined recession.
• Malaysian government bond market remained quiet, with total transaction amounting to RM1.1 billion on Monday. GII May’24 was in the limelight, contributed RM300 million to the daily volume, while closed 1bp lower at 4.11%.
• Thai government bonds strengthened following a weaker-than-expected GDP data reported, alongside the decent net buying interest of domestic players on Monday. On the macro side, the third quarter GDP came a tad lower at 1.1% QoQ, against 1.5% QoQ expansion projected by economists. On the other hand,
• Indonesia Government Bond market traded in tight range today, most of the activities centered on new 3yr retail bond (ORI11) that are eligible to be traded in secondary market after one month holding period has passed. Total traded volume for ORI11 reached IDR 11.2 Trillion, while all other series traded at about IDR 6 Trillion in volume.
• Asian dollar credits widened on the back of UST rally on Friday, amid weaker sentiment post weaker-than-expected 3Q2014 GDP reported in Japan. Bank of East Asia Nov’24 traded around 262bps on Monday, about 2bps wider than last Friday level. Meantime, China Oil edged lower from 98.69pts to 98.67pts.