CIMB Daily Fixed Income Commentary - 25 March 2014

Market Roundup

• US Treasury yield curve was flatter on Monday, as players continued showing better buying interest along the longer ends. 30-year bond yield dropped by another 5bps to close at 3.56%.
• Malaysian government bond market was thinly traded on Monday, as market participants were sidelined whilst awaiting for the announcement of the 7-year MGS auction, where the market is anticipating a size of RM4 billion. Aside, the thin spread of 15X20 years MGS widened by 6bps to 18bps.
• Thai government bond yields stood almost unchanged on Monday, despite well supported by local players and asset managers. Corporate bond market remained thinly traded, whilst market focus was on the 3-year IVL173A, last traded at 3.99%.
• IDR denominated government bond market still weakened on Monday. However, we found 15-year FR71 moved with another direction as demand was still significant on the series. Meantime, transactions were relatively more active with total volume of IDR11 trillion compared with IDR5 trillion only a day before. The market was corrected after Janet Yellen’s statement that give indication about interest rate hike in the future whilst no other strong positive sentiments from local side. The market may still move negatively amidst lacking of drivers currently.
• Asian Dollar credit market was moving in mixed directions on Monday, whilst gains were led by short covering activities. KWG Properties Jan’ 19 was traded higher to 95.36pts from 94.89pts, whilst China Resources Feb’19 inched down to 99.49pts from 99.53pts. Despite IG space was thinly traded, the iTraxx Asia ex-Japan IG index was further tightened by 3bps to 132bps in afternoon.

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

Connect with us on Facebook: www.facebook.com/CIMBGroup or follow us on Twitter: www.twitter.com/CIMB_Assists