To read the full report, data and graphs go to http://www.asianbondsonline.adb.org/newsletters/abowdh20150622.pdf?src=newsletter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx
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News Highlights - Week of 15 - 19 June 2015
Consumer price inflation in Malaysia accelerated to 2.1%
year-on-year (y-o-y) in May from 1.8% y-o-y in April, mainly due to more rapid
price increases for food and non-alcoholic beverages, which were up 3.5% y-o-y
in May compared with 3.1% y-o-y in April, as well as for housing and utilities
(2.6% versus 2.3%). The Producer Price Index in the Republic of Korea fell 3.5%
y-o-y in May, the tenth consecutive month of a y-o-y decline. This drop in
producer prices was largely brought about by a 5.8% y-o-y decrease in prices
for manufacturing industry products. Between April and May, the Producer Price
Index inched up 0.1%.
* On 18 June,
Bank Indonesia decided to keep its benchmark interest rate steady at 7.50%,
where it has been since February. Bank Indonesia also held steady the deposit
facility rate at 5.50% and the lending facility rate at 8.00%. The Bank of
Japan announced that it would maintain its monetary easing measures, stating
that the domestic economy was recovering moderately and this trend was expected
to continue. Inflation is expected to remain unchanged in the short term due to
the decline in energy prices, though it is expected to rise in the long
term.
* Japan's
merchandise trade deficit widened to JPY216 billion in May from JPY56 billion
in April as exports declined at a faster pace than imports. Exports of goods
declined 12.4% month-on-month (m-o-m) to JPY5.74 trillion in May from JPY6.55
trillion in April, while merchandise imports contracted 9.8% m-o-m to JPY5.96
trillion from JPY6.61 trillion. Non-oil domestic exports (NODX) in Singapore
contracted 0.2% y-o-y in May in a reversal from 2.2% y-o-y growth in
April.
* Overseas
Filipino remittances grew 4.9% y-o-y to US$2.2 billion in April, down from
11.0% y-o-y growth in March. For the first 4 months of the year, overseas
Filipino remittances reached US$8.6 billion.
* The Philippine
government recorded a budget surplus of PHP52.6 billion in April, reversing the
PHP17.4 billion budget deficit posted in March. Total revenues in April amounted
to PHP209.1 billion and expenditures reached PHP156.5 billion.
* Retail sales
growth in Singapore accelerated to 5.0% y-o-y in April from 1.9% y-o-y in
March, mostly due to the 56.4% y-o-y jump in retail sales of motor vehicles.
* In the
People’s Republic of China last week, Ctrip.com International issued a US$1.1
billion mulit-tranche convertible bond.
The first tranche was issued at a size of US$700 million and with a
maturity of 5 years and a put option exercisable in the 3rd year. The first tranche was issued at a coupon rate
of 1.0%. The second tranche has a maturity of 10 years and was issued at a size
of US$400 million. The second tranche
has a put option exercisable in the 5th year and was issued at a coupon rate of
1.99%.
* Yields fell for
all tenors in Indonesia, Malaysia and Singapore and for most tenors in all
other markets except in Viet Nam, following the fall in US yields. US yields fell due to increased demand for
safe haven assets over renewed concerns over Greece’s debt. Yields rose for all tenors in Viet Nam. As a
result, the 2-year versus 10-year yield spread fell for all markets except Viet
Nam.
* The upcoming
issue of the Asia Bond Monitor (ABM) will be released on 23
June in Kuala Lumpur, Malaysia and will available for download on the
AsianBondsOnline website.
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