There was little pullback in US Treasury yields after the reaching the highs post FOMC meeting. The 10T yield moved in range and settled lower at 2.59%, from the pea

Market Roundup

• There was little pullback in US Treasury yields after the reaching the highs post FOMC meeting. The 10T yield moved in range and settled lower at 2.59%, from the peak of 2.64%.
• Post the latest FOMC meeting where Fed policymakers proved to be increasingly hawkish, Malaysian government bonds weakened for a second consecutive session but the degree of sell-down was limited without heavier flows. By end of day, yields were up 3-10bps along the bellies of the yield curve. The 5-year IRS rose less than 3bps.
• THB bonds also weakened amid the hawkish FOMC but there was firm support from offshore especially seeing USD/THB consolidating around 35.770 late Friday. Foreign investors were net buyers of Bt3.67 billion of Thai bonds Friday. In economic data release, foreign reserves dipped to $174.1 billion as at 9 Dec from $175.6 billion as at a week before.
• It was an uneventful Friday in the Indonesian government bond market. A lack of bond liquidity caused prices to whipsaw easily. However bonds were well supported as local players were keen to bid papers maturing 5-10 years especially on-the-run series. In particular Sep’26 FR56 and May’27 FR59 looked very thin in supply, resulting in slip of about 9bps. Volume was huge amounting to IDR48.5 trillion dominated by ORI013.