CIMB Daily Fixed Income Commentary - 04 April 2014

Market Roundup

• US Treasury yields hovered at prior day’s levels, due to some support from buying-on-dips activities after seeing the yields rose decently over the last few trading sessions.
• Malaysian government bond yields inched up along the curve bellies, whilst short end 3-year MGS surged by 4bps, amid heavier selling pressure alongside with thin volume. We noted that players trimming of 7- and 10-year MGS due to the curve steepening anticipation, amidst waiting for incoming long ends supply in April. Meantime, the 7.5-year SPK remained untraded with WI last quoted at 4.35/4.30%.
• THB denominated government bonds weakened following the recent weak economic outlook concerns made by several parties, despite local funds were seen net buying government bonds worth THB21 billion. Among the government bonds, market focus was on LB155A and LB196A, last traded at 2.135% and 3.205% respectively.
• IDR denominated government bonds were dealt in mixed ways, whilst players began taking profits on Thursday despite lacking of fresh local driver to guide the market movement. Players also have been waiting for US unemployment rate data that may decline to 6.6% from 6.7% in the previous month. In line with insignificant movement in the capital market, rupiah was also moving in narrow range on the day.
• Market focus was on the newly issued Siam Commercial Bank Apr’19, which tightened 6bps to 174bps, after being priced at 180bps a day before. Aside, another primary issue of $5 billion worth of Sinopec tranches were seen tightened by the range of 3-5bps.

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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