Market Roundup
- US Treasury yields rose a tad higher amid anticipation of positive economic releases. However the upticks were reversed by disappointing readings from April Empire Manufacturing and March Industrial Production Index, sending the yields lower by 1-2bps along the front end and bellies of the curve.
- Malaysian government bonds weakened further, in conjunction with profit taking activities particularly due to the recent weakness shown in USD/MYR. Meanwhile, daily volume declined from RM3.3 billion to RM2.4 billion.
- Thai Market closed on Songkran Festival Day.
- Indonesia government bond market weakened following bond auction day, despite good trade surplus data announced on Wednesday. Traded volume today was dominated by Tuesday's auctioned series - FR69 (5-year) and FR71 (15-year) benchmark bonds, followed by FR70 (10-year) benchmark and new sukuk retail SR07 (3-year). Those 4 bonds contributed to around 67% of total transactions. March trade balance was announced, trade surplus of $1.13 billion beat the expectation ($589 billion) and previous number ($738 million). Trading volume jumped to IDR17.95 trillion.
- Market highlight was on the primary market for Asian credits. Primary deals were well absorbed, despite the sizeable combined issue size of $3 billion from four issuers. Haitong Securities’ 5-year bond was sold at +220bps, tighter than +245bps indicated earlier, amid heavy orders totalling $5.5 billion. Meantime, Formosa’s 10-year paper was issued at +157bps, also tighter than +180bps guided a day before. Central China sold its 5NC3 paper at 8.75%, while China Communications’ perp NC5 launched at 3.5%.
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