US Treasury yields moved in narrower ranges, and closed slightly higher across the curve,

Market Roundup

• US Treasury yields moved in narrower ranges, and closed slightly higher across the curve, reacting to the higher crude oil prices after the news reported that OPEC members agreed to lower production to 32.5 million barrels per day, from 33.4 million barrels. Brent crude surged to test $49/bbl from around $46/bbl a day prior.
• Malaysian government bonds moved in sideways. Daily trading volume was decent at RM2.7 billion, almost unchanged in contrast to a day prior. Elsewhere, WI for the 20-year GII was last heard at 4.29%. We reckon that the news of OPEC members’ agreement to lower production will aid Ringgit bonds in short term period.
• THB denominated sovereign bonds posted little gains during mid-week, supported by the BoT governor Veerathai Santiprabhob’s cautious tone on the rebound of export for the month of Aug. Meantime, trading flows were heavier at Bt18.7 billion, in contrast to Bt12.6 billion registered on Tuesday.
• Indonesian government bonds were traded with lower prices, led by selling auction by both foreign and onshore banks, particularly on the 5-year tenor, pressuring the rest of the curve. In general, trading volume appeared to be slightly thin. We think that market will be resilient and support bids shall emerge if there is a correction.