Market Roundup
- US Treasury yield curve ended flatter, as yields continued to pare lower from the recent highs, dropped about 1-5bps across the curve, amid cautious sentiment well ahead of the FOMC outcome.
- Malaysian govvies ended weaker on Tuesday, while flows remained light at RM1.3 billion. Sentiment continued to be slightly bearish, as players stayed at the sidelines awaiting for cue from FOMC meeting and Fitch review on Malaysian sovereign rating.
- Thai govvies strengthened on Tuesday, trekking the overnight UST movement. We think that players may shift buying interest on the bellies going forward, due to the steepness of the yield curve, as the 2-year benchmark yield dipped further below the policy rate of 1.50%.
- Indonesia government Bond traded in range with no clear direction ahead of Thursday's FOMC. MoF held IDR syariah bond auction on Tuesday, healthy demand was seen as incoming bids reached IDR4.467 trillion and government issued IDR690 billion over its IDR2 trillion target, with 1-year PBS8 dominated the auction (issued 74.72% of total issuance). Government cancelled 6-month SPN-S bill auction. Transaction volume was steady amounting IDR9.8 trillion.
- Asian credits traded wider, guided by weak sentiment in EM, pairing with cautious trading heading toward FOMC meeting. Regional high beta names dealt weaker, with Indonesian long dated papers continued to suffer losses on Tuesday. Meantime, iTraxx Asia ex-Japan IG Index widened by 0.5bps to 112bps.
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