Friday, March 4, 2016

CIMB Daily Fixed Income Commentary - 04 Mar 2016


Market Roundup
  • US Treasuries moved in sideways and ended little changed, amid stabilizing crude oil prices and gains in stock markets. However, we think that players were slightly on the cautious side and staying at the sidelines, awaiting Friday’s job data for further direction.
  • Ringgit govvies were well supported, amid persistent net buying demand, riding on the strengthening MYR. Trading activities remained heavy, and concentrated on short and medium term GII papers on Thursday.
  • Thai sovereign bonds further strengthened, reacting to the weaker consumer confidence reading (74.7 in Feb vs 75.5 in Jan) released by University of Thai Chamber of Commerce. In contrast, THB continued strengthening against USD, alongside regional currencies, despite the poorer number.
  • Indonesia government bond market rallied on the back of foreign buying inflows, with buying interest focused on benchmarked series especially FR56/FR73 and FR72. We have seen both real money flows and short covering flows on Thursday. Those flows causing yield curve to shift down easily in the midst of thin supply. We expect market to consolidate and prone to profit taking. Market volume decreased to IDR16 trillion.

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