- US Treasury yields were initially lower but closed with mild changes, following the release of stronger-than-expected 1Q2017 GDP data. The first revision of the data showed a firmer growth rate of +1.2% qoq, up from 0.7% initial estimate and 0.9% consensus expectation. On top of that, we reckon the recovery in crude prices also aided in pressuring yields higher, with Brent up by more than 1% to $52.15/bbl.
- Malaysia: Malaysian sovereign bonds continued to move in a narrow range, despite the firm MYR. Aside, Bank Negara Malaysia announced details for the reopening auction of the 7-year GII (GII Aug’24). Issue size comes at RM3.0 billion for the public tender, while an additional RM1.0 billion will be sold via private placement. WI trading was heard around 3.95/89% on Friday.
- Thailand: Demand for bonds remained firm, supported by open market operation (OMO) buying from BoT, seconded by local and offshore players. The yield in the mid- and long-ends edged lower 2-4bps and outperforming intermediates concentrated at LB226A, LB236A, LB25DA, LB27DA, and LB296A. At the same time, 15-year LB316A stayed well-bid from offshore investors and they bought short-term bonds at Bt4.29 billion worth and long-term bonds Bt 5.28 billion last Friday. We expect rally will halt on Monday as UK and US close for holidays.
- Indonesia: IndoGB was rangebound Friday on thin trading. Market was basically muted for most of the day, and Wednesday's night bombing in Jakarta didn't have much effect on the bond market. Near to closing, small buying flows were seen on 10- and 15-year buckets though not enough to lift the market. volume fell to IDR12.4 trillion and was concentrated on bonds maturing in between 5 and 10 years (32%) and bonds maturing in over 10 years (38%).