- US Treasury yields were initially lower, before closing slightly higher amid improved risk appetite following mild recovery in stock markets and pretty firm macro data. The 10T touched 2.18% in the early session but ended higher at 2.23%.
- Malaysia: Ringgit govvies were little changed on Thursday, despite the sharp decline in UST yields. On the flipside, we noted net selling pressure on the short dated papers with tenors less than a year, possibly due to foreign players’ profit taking activities after the MYR strengthened. Risk appetite may remain pressured in the near term as market continues eyeing US political developments, as well as heading into OPEC meeting slated for 25 May.
- Thailand: Bond curve was stable at less than 1bp move for all tenors after prior day’s rally alongside firm demand for LB316A on Wed. Plunging UST yields in bearish sentiment from the Trump chaos had little impact on Thai bond while trading was more active in the IRS market. Onshore swap curve moved lower in bull-flattening pattern, in line with US market - 5- and 10-year mid-rate of THB IRS last seen lower at 2.095% (-1bps) and 2.50%(-2bps). As 5-year IRS trades near key support of 2.10%, paying fixed rate at this level could be a good entry point.
- Indonesia: IndoGB were traded down on global risk-off tone due to the political situation in US. Market felt offerish from opening, but was still traded in range for most of the early session. In the afternoon session some selling action started, but defensive bids still appeared. We reckon volume was thin with 40% of traded bonds were those maturing in between 1 and 5 years and 33% maturing in over 10 years. Market volume halved to IDR7.4 trillion only.