US Treasuries consolidated with yields up mildly. Other than better-than-expected e

Market Roundup

• US Treasuries consolidated with yields up mildly. Other than better-than-expected existing home sales, there was a lack of macroeconomic data releases Tuesday but we await a slew of data in the coming days including durable goods orders and second reading of the 3Q2016 GDP as well as the Nov FOMC meeting minutes. As it were, fed funds futures trading has priced in absolute 100% probability the Fed will hike in Dec.
• US Dollar consolidated further with the DXY at 101.04 overnight. EUR/USD is around 1.0631. Near term risk include the Italian constitutional reform referendum (4 Dec). A reform nod to streamline the law-making process between the senate and Prime Minister is viewed as positive to markets as it potentially ease the legislative process.
• There was better net buying interest in Ringgit sovereign bond space, amid improved sentiment following the recent global bond rout. Elsewhere, there were little speculative moves ahead of the MPC meeting, as players reckoned that the central bank will stay pat on rates. Similarly, Ringgit IRS rates further declined by 2-7bps on Tuesday. Notably, 3-month KLIBOR inched up by 1bp to 3.41%, the first daily rise since Jul this year.
• Thai govvies posted little gains on Tuesday, in line with mild recovery in global bond markets. However, volume was pretty thin with Bt4.5 billion worth of govvies transacted, in contrast to Bt6.8 billion Monday. On the other hand, USD/THB also dipped below 35.50 amid profit taking pressure.
• IDR sovereign bonds weakened on Tuesday, with sellers appeared especially on the 5-year buckets, sending the 5-year yield higher than the 10-year paper. On the flipside, the market remained quiet on other tenors across the curve. Market volume leaped to IDR16 trillion and was dominated by bonds maturing in over 10 years (45%) and bonds maturing between 1 and 5 years (32%).