US Treasuries further weakened, tracking to higher crude oil prices post OPEC meeting held on mid-week. The 10T yield rose and peaked at 2.49%, before eventually pared lower to 2.45%.

Market Roundup

• US Treasuries further weakened, tracking to higher crude oil prices post OPEC meeting held on mid-week. The 10T yield rose and peaked at 2.49%, before eventually pared lower to 2.45%. Meantime, Brent crude touched the intraday-high at $54.53/bbl, the highest level this year.
• Malaysian sovereign bonds were dealt mixed, in conjunction with heavier trading interest on Thursday. Sentiment improved post OPEC meeting, but investors remained cautious in general, particularly with USD/MYR anchors at the higher range, as well as heading into risk events such as US NFP release and Italy’s referendum.
• Thai government bonds extended losses, reacting to the rise in UST yields post OPEC meeting. Flows were heavier, with daily volume climbed to Bt15.3 billion, from Bt11.5 billion registered a day prior, whilst trading activities were slanted toward LB206A and LB226A. Expect to see pressure to sustain if UST yields continue to show upticks along with higher crude oil prices. On the other hand, Nov CPI came at +0.60% yoy, marginally lower than market expectation at +0.63% yoy.
• Indonesian govvies were traded in tight range on Thursday although UST yields were higher overnight due to news on OPEC's deal to decrease production volume. It seemed like bond market appeared on slightly weak tone on opening, however thin supply and buying flows supported the bond prices, and bonds market closed unchanged from previous day's closing. Market volume was huge amounting IDR17.4 trillion and was dominated by bond maturing between 5 and 10 years (36%).