Tuesday, August 4, 2015

CIMB THB Weekly Fixed Income Commentary for 31 Jul 2015



Market Roundup
  • Thai sovereign yield curve ended marginally steeper, with little gains posted on the front end of the curve. The govvies were seen hovering near prior levels during the holiday-shortened week, while players preferred staying at the sidelines heading toward MPC meeting scheduled on Aug 5. On the other hand, the Bt10 billion LBA37DA auction was received with soft demand, as bid-cover ratio was registered at 1.38 times. Moreover, average yield stopped at 3.6637%, in between a low-high spread of 3.6200-3.6780%.
  • At this juncture, we reckon that market has not priced in the impact of a rate cut, but going forward the sustained subdued economic activity may prompt for further rate cut.
  • Elsewhere, investors showed decent bidding interest in corporate bond market, particularly on the short dated bonds. Meanwhile, highlight was on the short dated papers with maturity up to 3-year, which included TOLC17NA (AA+), BAY172A (AAA(tha)) and LH17OA (A+).

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Related Posts with Thumbnails