Wednesday, April 29, 2015

CIMB Daily Fixed Income Commentary - 29 April 2015


Market Roundup
  • US Treasury yields closed higher along the curve, pressured by selling activities ahead of FOMC meeting. The 10T yield climbed substantially and revisited the threshold level at 2.00%, the first time since mid of March.
  • Malaysian sovereign yield curve inched higher, driven by thin profit taking pressure, as sentiment remained cautious ahead of the FOMC meeting this week. On the other hand, market saw thinner transaction amounting RM2.7 billion, compared to RM4.0 billion registered a day before.
  • THB denominated government bonds posted little losses, amid cautious trading activities before the MPC and FOMC meetings slated for this week. Daily volume shrank from Bt31.3 billion to Bt22.6 billion.
  • Selling pressure continued following Tuesday's IDR government bond auction.  The auction demand was pretty weak on auction day where the government accepted IDR7.9 trillion of incoming bids out of IDR10 trillion target issuance. However, government only issued IDR4.85 trillion and awarded yield according to market level. Market rebounded a bit post auction result where BI was seen buying FR69 and FR71. On the other hand, transaction volume improved to IDR 9.5 trillion.
  • Risk-on sentiment dented in Asian credit market, as investors biased towards cautious trading heading towards FOMC meeting slated for this week. Malay Apr’25 and Apr’45 were seen quoted wider by 2bps to T+110bps and T+159bps.

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