Market Roundup • US Treasury yields climbed 2-4bps across the curve, lifted by higher crude oil prices on top of recent hawkish comments from Fed members. Furthermore, we think that anticipation of upcoming primary supplies this week also exert upward pressure to yields. US Treasury Department will conduct auctions for 3T ($24 billion), 10T ($23 billion) and 30T ($15 billion) from 9-11 May. • Ringgit govvies were dealt mixed, amid mild net selling pressure on shorter dated papers. Aside, foreign players turned net buyers of Malaysian government bonds in Apr, by increasing their holdings (in MGS+GII) to 26.5% of total outstanding bonds (or up RM6.0 billion net), after drop from 29.8% in Feb to 26.5% in Mar. The rest of the short week, we anticipate sideways movement ahead of MPC (we expect status quo) Friday. • Thai sovereign yields edged modestly lower about 1bp across the curve amid light flows in the market. Movement in Thai bond market indicated it has yet to react to increasing possibility of a Jun Fed hike. Meanwhile, net selling pressure was felt at the mid and back of the curve but it did not materialize or affect a higher shift in the curve. The auction of 50-year LB666A is today and we expect a decent demand as the yield traded up to 3.70%, +2bps from 3.687% average bidding yield of the previous auction on Mar 29. • Indonesian government bonds traded in a tight range on Monday, volume was thin amounting to IDR5.7 trillion only. Supportive bids were seen on 10-year FR59, while the rest of the curve showed very low activity. MoF will be holding an IDR bond auction today. Series up for auction will be 3- and 12-month SPN bills and 5-year FR61, 15-year FR74, and 20-year FR72. We think auction demand will be moderate-to-solid as market may respond positively to another risk event that has passed (France election).

Market Roundup

• US Treasury yields climbed 2-4bps across the curve, lifted by higher crude oil prices on top of recent hawkish comments from Fed members. Furthermore, we think that anticipation of upcoming primary supplies this week also exert upward pressure to yields. US Treasury Department will conduct auctions for 3T ($24 billion), 10T ($23 billion) and 30T ($15 billion) from 9-11 May.
• Ringgit govvies were dealt mixed, amid mild net selling pressure on shorter dated papers. Aside, foreign players turned net buyers of Malaysian government bonds in Apr, by increasing their holdings (in MGS+GII) to 26.5% of total outstanding bonds (or up RM6.0 billion net), after drop from 29.8% in Feb to 26.5% in Mar. The rest of the short week, we anticipate sideways movement ahead of MPC (we expect status quo) Friday.
• Thai sovereign yields edged modestly lower about 1bp across the curve amid light flows in the market. Movement in Thai bond market indicated it has yet to react to increasing possibility of a Jun Fed hike. Meanwhile, net selling pressure was felt at the mid and back of the curve but it did not materialize or affect a higher shift in the curve. The auction of 50-year LB666A is today and we expect a decent demand as the yield traded up to 3.70%, +2bps from 3.687% average bidding yield of the previous auction on Mar 29.
• Indonesian government bonds traded in a tight range on Monday, volume was thin amounting to IDR5.7 trillion only. Supportive bids were seen on 10-year FR59, while the rest of the curve showed very low activity. MoF will be holding an IDR bond auction today. Series up for auction will be 3- and 12-month SPN bills and 5-year FR61, 15-year FR74, and 20-year FR72. We think auction demand will be moderate-to-solid as market may respond positively to another risk event that has passed (France election).