CIMB Daily Fixed Income Commentary - 07 April 2014

Market Roundup

• US Treasury strengthened on the weaker-than-expected non-farm payroll data, as players were still seeing job creation momentum remained soft and lagged Fed’s expectation, despite the improvement. Week-to-week 5-year note fell by 5bps to 1.70%.
• Ringgit denominated government bond market was thinly traded as players remained sidelined. Aside, market focus was on the 7-year MGS and 7.5-year SPK. We noted some players trimming positions on 7-year MGS, which may be freeing space for the 7.5-year SPK auction.
• Thai government bonds posted little gains amid softer market, as 10-year government bond yield most notably rose by 4bps to 3.68%, whilst other papers were firm at prior day’s levels. Aside, short dated CB14422A was actively traded on Friday, amounted to THB20 billion worth of trading volume.
• IDR denominated government bond was muted and moved with negative tendency as there was lacking of market driver. Previously the market booked gains after improved domestic economy data, but players realized the gains that obtained in early week, whilst awaiting US labor data, which may show lower unemployment rate. Rupiah also moved in narrow range during the day. Trading volume was very thin, only about IDR3.24 trillion.  
• Asian dollar credit market was muted, as investors were sidelined ahead of the release of non-farm payroll data, which was broadly expected to be robust. Meantime the Asia ex-Japan IG iTraxx index tightened by 1bp to 124bps on Friday.

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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