Monday, June 15, 2015

CIMB Daily Fixed Income Commentary - 15 Jun 2015


Market Roundup
  • US Treasuries closed marginally weaker on Friday, as players were seen staying at the sideline ahead of the FOMC meeting scheduled on Jun 18. Also, market downplayed the concern on slow progress of Greek bailout plan, despite IMF spokesman Gerry Rice stated that the Greek debt discussion were “well away from an agreement”.
  • Malaysian government bonds weakened, amid thin trading interest heading toward weekend, as daily volume came low at RM1.3 billion. Meanwhile, we noted better bidding interest clustered along the GII papers, guided by bargain hunting trades.
  • Muted trading interest for Thai government bonds, as trading volume moderated from Bt26.9 billion to Bt14.3 billion ahead of weekend. On top of that, players were seen better buyers on the bellies of the curve, tapping on the higher yielding papers, due to the steepness of the curve.
  • Indonesia government bond market traded up on Friday, aligned with US Treasury. Generally market was quiet ahead of Today's trade balance data, with most activities centred in the 10-year and 15-year buckets. Trading volume plummeted to IDR8.6 trillion only.
  • Asian dollar credit held firmer on Friday, driven further by improved buying sentiment, particularly along the high yield names, following the recovery in UST.


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