CIMB Daily Fixed Income Commentary - 03 April 2014

Market Roundup

• US Treasuries continued to show weaknesses along the curve, amid the release of decent ADP employment figure. 5T yield surged notably by 6bps to 1.79%.
• Malaysian government bonds were seen range-traded, however yields were slightly slanted downward due to some buying on dips activities. Market focus was still on the new 7-year MGS, whilst the level was pretty much supported by both local funds and offshore banks. We view that the yields may be moving in sideways ahead of Friday NFP release.
• 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 denominated government bonds moved sideways in the secondary market. Players focus was on government bond auction, which successfully raising funds totaling IDR9.9 trillion, and surpassed its indicative target of IDR8 trillion. Meantime, total incoming bids reached IDR26.18 trillion, most of funds were tendered toward the benchmark series. At this juncture, the government has raised about IDR175 trillion or 49% of its bond target issuance this year.
• Asian dollar denominated bonds pared gains, as buying interest was boosted along the new issuances. BBL maturing 2018 and 2023 tightened by 10 and 5bps respectively to 125 and 180bps, upon the news of Siam Commercial Bank issuing 5-year bond (A3/BBB+ rated) pricing at the range of 180-185bps.

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