Thursday, October 19, 2017

FW: CIMB Fixed Income Daily - 19 Oct 2017 - UST yields rose as Fed Beige Book indicated modest to moderate growth

 

 

US Treasuries. UST yields climbed post release of Fed Beige book, which indicated that economic growth expanded modest to moderately in Sep through early Oct, although selected districts reported major disruptions from hurricanes, while labor markets remained tight as price pressures crimped business profits. Also, the yield upticks were aided by speculations on nomination of a more hawkish Fed chief by Trump, along with stronger risk appetite as DJIA closed above 23,000 for the first time.

Malaysia. The MYR sovereign bond market was closed on Deepavali holiday. To recap, the govvies continued to see muted flows on Tuesday, led by short and medium dated papers. In addition, sentiment was also not aided by currency movement, as USD/MYR is seen contained within 4.20-4.25 in the near term period.

Indonesia. It was a quiet day in IndoGB market as some neighbouring countries celebrated Deepavali on Wednesday. Despite few activities recorded, there were small buying flows on 7yr bond and caused 7yr yield to go down by 4 bps. The tone was soft on the 10y bucket, but other tenors looked balanced on both bid-offer sides. Today BI will decide on the 7-day reverse repo rate, where market consensus expects rate to remain unchanged at 4.25%. Market volume leaped to IDR17.5 trillion, dominated by bonds maturing in over 5 years (73%).

Best Regards,

CIMB Treasury & Markets Research-Fixed Income
Tel: +603 2261 8557 | Fax: +603 2261 8705
www.cimb.com
Find us on Bloomberg at CIMR <Go>

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