US Treasury yields edged lower across the curve, amid buy-on-dips interest. The improved demand was also aided by the release of weaker-t

Market Roundup

• US Treasury yields edged lower across the curve, amid buy-on-dips interest. The improved demand was also aided by the release of weaker-than-expected core inflation in Sep (+0.1% MoM against consensus +0.2% MoM). On top of that, Sep CPI recorded at +0.3% MoM, meeting economists’ forecast.
• Ringgit sovereign bonds closed mixed on Tuesday. Overall, sentiment appeared to be better, guided by recovery in MYR (USD/MYR dipped below 4.20), with gains led by shorter dated papers. Whilst sentiment may be guarded ahead of Malaysia's Budget 2017 announcement this Friday, we expect some support from buying-on-dips interest if MYR continues to strengthen in the short term period.
• Thai government bonds stood on better footing, as sentiment recovered in conjunction with firmer THB (USD/THB slipped to near 35.00). On the flipside, flows in secondary trading were slightly thinner at Bt14.6 billion (lower than Bt15.4 billion registered a day prior), led by LB206A and LB226A.
• Better selling mode was seen in the Indonesian government bond market on Tuesday, contrary with Jakarta stock index, in which JSI went up by 19.14pts (0.36%). The bond maturing flows were about IDR21.5 trillion (ORI&SPN) and reduced demand for bond, in fact the sharia bond auction received incoming bids amounting IDR4.036 trillion, lower than IDR7-8 trillion average of incoming bids. Government cut the issuance to IDR2.52 trillion from initial target IDR3 trillion.