- US Treasuries ended marginally firmer on Wednesday. The yields edged higher along with positive Jul ADP Employment report, but were subsequently pared lower by buying-on-dips interest.
- Ringgit govvies posted losses, as sentiment weighed by weaker Ringgit and subdued oil prices. Flows were relatively thin on Wednesday, with players awaiting the 7-year MGS reopening auction tender on Thursday. WI was last heard at 3.465/455%.
- Thai sovereign bonds ended little changes, whilst flows remained relatively thin with daily volume totalling Bt12.9 billion on Wednesday. Bank of Thailand held its policy rate at 1.50% in the latest MPC meeting, in line with market expectation. We think that the policymakers sounded slightly dovish, as they stated that economy continued to recover at a gradual pace, but “facing greater downside risks from increased uncertainties in global economy”. While core inflation remained stable, the central bank saw a possible slower-than-expected rise in headline inflation to the target band, subject to oil price movement.
- Indonesian government bonds weakened, weighed by some profit taking action led by foreign onshore banks. Supportive bids were provided by local banks and investors especially on auctioned benchmarks (5-, 10- and 15-year), and closing yields are now resembling highest yields bidded in auction day. Elsewhere, daily volume was steady amounting IDR19 trillion, whilst trades were dominated by bonds maturing in over 10 years (63%) and shorter term bonds maturing between 1 and 5 years (26%).