CIMB Daily Fixed Income Commentary - 02 April 2014

Market Roundup

• US Treasuries weakened along the curve, whilst yield curve steepened as the reversal in trading trend noted. Yields for longer ends 10T and 30T rose by 3 and 5bps respectively, amid heavier selling pressure ahead of job data releases.
• Malaysian Government Bonds were dealt mixed but on pretty active volume on Tuesday. There was little in terms of fresh market drivers, with some attention diverted towards this week’s US non-farm payrolls data due for release at end of week.
• Thai government bonds ended firm with yields down 2-4bps but IRS rates were mostly up on the day. Support came from offshore players with a hefty net buy of Bt7.4 billion on Wednesday.
• IDR government bonds ended with lower yields across the curve. The inflation and trade balance data gave positive impact to the market Tuesday. Inflation was slower at +0.08% MoM or +7.32% YoY in March, declining from a month before of +7.75% YoY.
• Asian dollar denominated bonds were boosted especially after investors heard comments from Fed chief Janet Yellen which seemed to backtrack recent signals the Fed would hike rates sooner than expected. Gains include Indian bank papers and higher grade corporates including Thai and Malay names.

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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