US Treasuries were dealt weaker after the long weekend, with 10T yield climbing another 11bps and closed at 2.26%, approaching the peak of 2.31% registered last Dec. E

Market Roundup

• US Treasuries were dealt weaker after the long weekend, with 10T yield climbing another 11bps and closed at 2.26%, approaching the peak of 2.31% registered last Dec. Expect bearish tone to sustain and further upward yield pressure this week. We continue to watch developments on the political and fiscal side. But going by technical, we take short term 10T resistance to be around 2.35%.
• The weak sentiment continued to exert net selling pressure on Ringgit bonds, despite mild recovery in Ringgit on Monday. Aside, the 7-year GII reopening saw average yield of 4.094%, within a wide spread of 4.047-4.143%, and higher than WI 3.98/94% last Friday. Meanwhile, bid-to-cover ratio was 2.21 times for the RM3 billion issue.
• Thai govvies continued to see net selling pressure early the week. Notably, the 10-year benchmark yields climbed by about 20bps, ahead of incoming supply from auction scheduled on 16 Nov. Similarly, IRS curve steepened, as longer end rates rose by 10-12bps. Elsewhere, THB was dealt weaker against USD, with USD/THB edged higher and hovered at 35.45 late Monday.
• Different day, but same story in Indonesian government bonds, which were still traded down as market players tried to reduce risks especially on short dated 5-10 year papers this time. Market was hovering at current level until close. Market volume was still huge amounting IDR24.3 trillion and was dominated by bonds maturing in over 10 years (41%) and bonds maturing between 5 and 10 years (27%).