- US Treasuries moved in narrower ranges, alongside with low German bund yields, as the Euro CPI remained soft at +1.3% yoy in Jul, unchanged from a month earlier and was still below the ECB’s 2% target. On a separate note, Fed vice chair Stanley Fischer stated the US political uncertainty weighed on economic growth, “until the policy environment clarities”.
- Malaysia: Ringgit govvies were directionless and moved in narrow ranges, seeing little impact from the firmer UST post weaker-than-expected US 2Q2017 GDP report late last week. Similarly, sentiment was not aided by USD/MYR movement, as the pair remained flat at 4.2813. Due to the lack of fresh catalyst, apart from the fluctuation of oil prices, players are expected to stay at the sidelines ahead of US NFP slated for this Friday.
- Thailand: Thai bonds gained along the curve with yields falling 1-3bps after the market reopened from the long holiday. Escalating geopolitical tension, disappointing US GDP, concern over local politics decreased investor's risk appetite and the SET index managed to close lower at 1,576.08, but strengthened demand for Thai govvies. Furthermore, surplus in Thailand's current account widened by $4.23 billion in Jun, indicating strength in external balance and supporting fundamental for the Baht. Consequently, foreign investors increased position in short-term bonds at Bt8.18 billion and long-term bonds at Bt8.12 billion while sold off Thai stocks at Bt7.16 billion on Mon.
- Indonesia: IndoGBs were traded up in line with UST. In general, market was sideways since last Thursday's FOMC meeting. Market was relatively quiet on Monday, small buying flows were seen in 5- and 20-year buckets, suspected by locals. MoF will be holding IDR Sharia bond auction today with IDR6 trillion target. Demand might be low-to-moderate with auction possibly dominated by local players. Market volume was steady amounting IDR12.1 trillion and dominated by bonds maturing in over 10 years (42%).