Malaysian sovereign bonds remained well supported, alongside firmer Ringgit on Monday.

Market Roundup

• Malaysian sovereign bonds remained well supported, alongside firmer Ringgit on Monday. However, trading activities were relatively muted ahead of Hari Raya holiday, with daily volume totalling RM1.7 billion.
• Similarly, MYR corporate bonds were thinly traded, led by AAA rated IESB tranches maturing 2019-2020. Aside, investors continued to show demand for long dated papers namely Rantau May’31, PLUS Jan’27 and Unitapah Dec’33.
• Thai sovereign bonds posted gains. Sentiment was aided by weaker-than-expected inflation numbers released on last Friday. The Jun CPI was +0.38% yoy, below consensus of +0.50% yoy, dragged by the low oil prices despite the recovery in recent months. Aside, flows remained decent at Bt16.1 billion, and were slanted toward LB176A, LB183B and LB25DA on Monday. Meantime, players will be eyeing the LB466A auction slated for 6 Jul, which was indicated with a size of Bt10 billion.