Market Roundup
- US Treasuries strengthened further after the knee-jerk gains recorded a day prior, guided by status quo in Fed’s rate decision. Apart from that, drop in crude oil prices, alongside the stock market losses also weighed on the UST yields on Friday.
- Ringgit sovereign papers extended gains, tracking US Treasuries movement, after the Fed decided to hold rates on Thursday. Also, sentiment was boosted following the further downward movement in USD/MYR, as the currency pair dropped further and closed below 4.2000 on Friday. Meanwhile, WI for the GII Jul’22 was last heard at 4.185%.
- Thai govvies closed mixed on Friday, but we noted improved trading interest following the FOMC meeting, as trading volume increased from Bt10.6 billion to Bt16.7 billion. Aside, THB strengthened against USD after the Fed held rates unchanged on Thursday, also aided the net buying interest in govvies.
- Indonesia government bond market rallied on Friday after the highly anticipated Fed rate decision, with Fed decided not to raise rate last night. Bond market initially quoted lower on open compared to previous day's closing. Market seemed to lose buying momentum on morning session. However on London open, market started to rally, with foreign buying flows seen on all benchmark series. We think buying momentum will continue this week, market might prone to profit taking when 10-year reach 8.50%. Volume decreased slightly to IDR 10.8 trillion.
- Asian dollar credits posted gains on Friday after the Fed decided to delay the lift off in rates. On closer end, Philippines Jan’24 rose by 0.63pt to 110.99pts, while Vietnam Nov’24 edged higher from 96.92pts to 97.33pts. Expect to see bidding interest to resume, with flows driven by the investors who trimmed positions ahead of FOMC meeting.
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