Monday, March 30, 2015

CIMB Daily Fixed Income Commentary - 30 March 2015


Good Morning,

Market Roundup
  • US Treasuries recovered losses, aided by some buying-on-dips interest, along with a relatively neutral revised 4Q2014 GDP data ahead of weekend.
  • Ringgit govvies were under pressure, amid weakening MYR following the decline in crude oil prices, after the recent rally triggered by Saudi’s airstrike on Yemen. WI for the new 7-year MGS benchmark was last heard at 3.79/76%.
  • THB denominated government bonds remained well supported on Friday. We reckon that the buying interest was boosted by the weak February exports, pairing with some month end demand. On the other hand, daily volume eased from Bt42.1 billion to Bt40.2 billion.
  • IDR Bond market mostly traded in tight range during the day amid no clear guidance. Meanwhile we noted little selling pressure on the 10-year benchmark bond near closing hour, however it was well supported. Most players stayed at sidelines ahead of Friday's US GDP data and upcoming week's bond auction.
  • Asian dollar credits hovered at prior levels, amid a lack of fresh catalyst in the market. However, Petronas papers were seen quoted tighter on Friday, as sentiment probably aided by the rally in crude oil prices.


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