US Treasuries moved sideways and closed little changed as players await the FOMC meeting. Meanwhile, the Treasury Department sold $12 billion worth of the 30T. Demand was decent, reflected by a bid-to-cover ratio of 2.32 times, in contrast to ave

Market Roundup

• US Treasuries moved sideways and closed little changed as players await the FOMC meeting. Meanwhile, the Treasury Department sold $12 billion worth of the 30T. Demand was decent, reflected by a bid-to-cover ratio of 2.32 times, in contrast to average 2.295 times in the past 12 similar auctions. High yield was generated at 2.87%, while indirect bidders accounted for 63.7% of the sales.
• Malaysia: Trading activities were light, as daily volume shrank to RM970 million, from RM3.4 billion registered on Friday. Flows concentrated on shorter dated papers with tenors up to three years. Still, we expect range-bound movement pending FOMC.
• Thailand: Thai bonds rose in a bull-flattening move on Tuesday led by foreign players’ interest which increased their net buy position at Bt5.47 billion in long-term bonds while sold short-end bonds at Bt774 million. Yields fell 2-3bps on the belly and far-end starting (from 5-year LB21DA to 23-year LB406A) amid solid foreign demand adding pressure on USD/THB to trade under 34.00.
• Indonesia: IndoGBs were traded sideways all day ahead of this week's FOMC and BI meeting. Activities in the secondary market looked low, and mirrored by a lackluster Sharia auction, where the government only received IDR8.6 trillion incoming bids. From IDR5 trillion target issuance, the government decided to downsize to IDR3.03 trillion and cancelled 05/21 PBS14 and 11/31 PBS12 Sharia bonds. Market volume decreased to IDR8.6 trillion and centered on bonds maturing in between 5 and 10 years (44%).