US Treasury yields were initially higher as market reopened post Thanksgivings. However, the yields erased earlier upticks across the curve, in conjunction with lower crude oil prices, after Saudi Arabia declined talks with non-OPEC members on Monday.

Market Roundup

• US Treasury yields were initially higher as market reopened post Thanksgivings. However, the yields erased earlier upticks across the curve, in conjunction with lower crude oil prices, after Saudi Arabia declined talks with non-OPEC members on Monday.
• Elsewhere, wholesale inventories contracted by 0.4% MoM in Oct, weaker than 0.2% MoM growth projected earlier. The US trade deficit increased to $62.0 billion in the month of Oct from $56.5 billion the month before, which could weigh on the 3Q2016 GDP coming out this week. Other data this week include PCE, ISM manufacturing personal spending, and Nov non-farm payrolls, as well as release of the Fed Beige book. Consensus for Nov NFP is +175k compared with +161k Oct. The 5T is now 3bps lower at 1.81% from last Friday ahead of a relatively busy data week.
• Ringgit govvies saw mixed trading interest. Despite USD/MYR remained at the higher range around 4.45-4.46, short dated papers were supported by buying-on-dips. On the other hand, the 10-year MGS reopening auction was announced with an offer size of RM2 billion, and WI was heard 4.45/35% on Friday.
• In economic data release, headline inflation eased marginally from +1.5% yoy in Sep, to +1.4% yoy in Oct.
• THB denominated sovereign papers posted mild losses, amid thinner trading flows on Friday. Apart from that, THB’s weakness persisted, despite USD/THB inched lower to 35.63 ahead of the weekend. Expect the long dated papers to see pressure ahead of the upcoming LB466A auction, which is indicated at size of Bt13 billion.
• Indonesian government bond market stabilized on Friday as bidders appeared especially local players. The bond market opened offerish and looked set to continue its downward movement in price but steady bids halted the negative momentum, and market rebounded later in the afternoon session. Market volume decreased to IDR13.7 trillion and was dominated by bonds maturing over 10 years (41%).