US Treasuries. UST were a tad firmer, as NFP was +261k in Oct, lower than 313k forecasted earlier. On the positive side, the job market conditions improved from the previous month as the hurricane impact faded. The unemployment rate inched lower to 4.1% during the same period. Apart from that, news reported that Yemeni rebels launching ballistic missile over the weekend, targeting Saudi Arabia's capital airport, but the attack was intercepted and no one was injured. Elsewhere, factory orders rose 1.4% in Sep and ISM non-manufacturing rose to 60.1 reading in Oct from 59.8 Sep.
Malaysia. MYR govvies saw muted trading interest, with flows led by short-dated MGS Mar'18. Elsewhere, Malaysia's exports and imports accelerated at slower pace of +14.8% and +15.2% for the month of Sep, from +21.6% and +22.4% yoy respectively a month prior. Bank Negara Malaysia will have its MPC meeting on 9 Nov. Some consolidation is expected ahead of the central bank's decision. Similar to consensus, we expect the OPR to be maintained at 3.00%, as we think policymakers are in no rush to raise rates due to the higher cost-pushed inflation.
Thailand. Bonds remained in thin trading with marginal decrease in yield influenced by lower shift in UST curve. Thai bond yields extended a consolidating trade in lower tilt as the market awaited NFP report on Friday and Thailand MPC on Nov 8.
Indonesia. IndoGB continued to trade firmer on Friday, whilst USD/IDR was sent lower to 13470 after consolidating around the 13500 level for the past two weeks. Flows were concentrated on the bellies to long end of the curve. Supply seemed to be thin in 15y bucket, and buyers drove the 15y yield down by 11bps to 7.05% at close. Market volume was thin amounting to IDR5.4 trillion.
Asian USD credits. USD credits were generally stable ahead of NFP release on Friday. In the primary space, China Vanke sold $1b 10-year paper at T+165bps, tighter than T+200bps guided a day prior. HNA Group priced $300m 1-year paper at 8.875%, compared to 9% indicated earlier.
Best Regards,
CIMB Treasury & Markets Research-Fixed Income
Tel: +603 2261 8557 | Fax: +603 2261 8705
www.cimb.com
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