US Treasuries. UST yields ticked higher amid ease in risk aversion with recovery in global stock markets. Meantime, the 10T was seen consolidating within 2.30-2.40% range, awaiting new developments in tax plan. In economic releases, initial job claims registered at 249k for the period ended 11 Nov, higher than consensus 235k. Industrial production was firm at +0.9% yoy in Oct, above +0.5% forecasted earlier.
Malaysia. Trading in Malaysian sovereign bonds remained muted, with activities slanting towards short dated papers and 7y MGS. Elsewhere, IRS rates edged higher by 1-2bps across the curve. In general, sentiment was guarded ahead of the release of 3Q2017 GDP report this Friday, despite the recent strength in MYR.
Thailand. Thai bonds fluctuated in tight ranges on Thursday, in line with falling UST yields. 5y LB22DA was a target buy among foreign investors and local players as the yield was attractive after long-tail auction result on Wednesday. Moreover, sell-off in front end somewhat slowed in risk negative environment causing lower close of SET index and foreign net buy in Thai bond for a second consecutive day.
Indonesia. Market was traded in tight ranges with lighter volume on Thursday compared to previous day. Market was generally quiet even though IDR was firmer coupled strengthened UST. Next week, government will hold sharia bond auction. We think demand for the auction will remain solid. We also believe market is resilient as government might cancel the next auction as total issuance is close to target. Market volume fell sharply to IDR5.0t.
Asian Dollar Credits. USD credit market remained weak amid cautious sentiment. However, selling pressure eased on Thursday with recovery in most of the Asian equity markets. As for primary market, Bloomberg news reported that Shenzhen International and Tsinghua Tongfang will be meeting potential investors for their USD offerings beginning 17 and 20 Nov.
Best Regards,
CIMB Treasury & Markets Research-Fixed Income
Tel: +603 2261 8557 | Fax: +603 2261 8705
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