CIMB Daily Fixed Income Commentary - 21 March 2014

Market Roundup

• US Treasuries stood firm at Wednesday’s levels, as the knee-jerk selling earlier was well supported by buying-on-dips activities. 5T yield marginally fell by 1bp to close at 1.70%.
• Malaysian government bond yields inched up on the shorter ends, as well as the 10-year MGS, which was traded 3bps higher, amid thin selling pressure post Yellen’s hawkish statement in FOMC meeting earlier.
• Thai government bond yields rose along the curve, led by the pressured sentiment post Yellen’s statement during FOMC meeting. Meantime, the longer term of state agency bond BOT167A was actively traded, contributed a sum of THB4.7 billion on Thursday, with an average yield of 2.47%.
• IDR denominated government bond market still booked higher yields across the curve on Thursday. After the market experienced significant decline during the day, some players were buying on dips, thus showing some support to the market. Most of trading activities centered on the benchmark series especially 20-year FR68 (IDR2.12 trillion) and 10-year FR70 (IDR2 trillion). In total, volume was still hefty about IDR11.53 trillion, but it was thinner than previous day of IDR17 trillion.
• In general, Asian dollar credits were seen traded from unchanged to losses, after the overnight hawkish statement made by Yellen during FOMC meeting. Chinese property credits remained soft, but selling pressure eased as KWG Jan’19 fell by 0.23pts to 94.04pts, whilst China Merchant Dec’18 held unchanged at 100.59pts.

Best Regards,
CIMB Fixed Income Research
Corporate Banking, Treasury and Markets
Tel: +603 2261 8888 | Fax: +603 2261 8705
www.cimb.com

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