CIMB Daily Fixed Income Commentary - 20 May 2015

Market Roundup

• US Treasury yields were pushed higher, by decent housing reports shown on Tuesday, pairing with some cautious trading heading toward the release of FOMC minutes during mid-week.
• Malaysian government bonds dealt marginally stronger, with gains clustered on the front end and bellies of the curve. Meantime, the central bank announced auction for the new 20-year MGS, which came at an issuance size of RM2 billion. WI was last heard at 4.30% (bid).
• Thai sovereign bond yields inched higher across the bellies of the curve on Tuesday, while we did not see any further reaction to the softer-than-expected 1Q2015 GDP number reported earlier the week. Meantime, daily volume stood at Bt11.7 billion, a tad higher than Bt11.5 billion registered a day before.
• Indonesia government bond market opened softer on Tuesday, selling pressure seen with IDR currency weakened to 13,180. However bond rebounded post-BI rate announcement especially on belly to long end of the curve as BI rate remains unchanged at 7.50% as expected. On IDR Syariah auction, government issued IDR2.51 trillion of bonds from IDR2 trillion initial target, incoming demand was IDR5.08 trillion. Trading volume improved to IDR12.2 trillion.
• Asian dollar credits ended flat on Tuesday, as market highlight remained on the primary deals, despite the active primary market in the recent weeks. Aside, focus was on Mongolia sovereign Dec’22, which leaped from 89.88pts to the high at 94.32pts, after the positive progress on the dispute case between the government and Rio Tinto Group.