CIMB Daily Fixed Income Commentary - 09 April 2014

Market Roundup

• US Treasury yields further inched down on the medium and long ends, thus seeing the curve flattened marginally. Players were noted with softer buying interest, ahead of the release of FOMC meeting minutes.
• Malaysian government bond yields dipped amid active market, particularly on the curve bellies on the stronger Ringgit. We noted offshore players continued buying into the 5-, 7- and 10-year MGS whilst onshore players trimmed positions and realized profit.
• Thai government bond yields were hovering at prior levels, whilst 10-year government bond yield fell notably by 4bps to close at 3.64%. Total trading volume rose by 4.3% to THB1 trillion on Tuesday. Short dated CB14710B was most actively traded throughout the day, contributed THB21 billion worth of trading volume.
• IDR denominated government bonds moved in positive territory, amid moderated transactions. Volume reached IDR13.21 trillion, but led by 3-year SR006 about IDR3.50 trillion as the series could be traded in the secondary market after issuance in the early March. Moreover, we saw that benchmark series were pretty actively transacted as well in the market on the day. In general, the market seems taking wait-and-see stance ahead of legislative election. Meantime, Bank Indonesia as expectedly kept BI rate at 7.50%.
• Asian dollar credits were moving in mixed amid better flows on Tuesday. Chinese Resources Feb’19 was traded higher from 101.08 to 101.10pts, whilst Agile Feb’19 inched down by 0.02pts to 99.92pts. Meantime, credit spreads may be under pressured due to the incoming of strong pipelines such as OCBC subdebt, LG Electronics, Cagamas and etc.

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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