CIMB Daily Fixed Income Commentary - 10 April 2014

Market Roundup

• US Treasury yield curve steepened, after the release of the March FOMC meeting minutes. Players were seen with better buying interest along the shorter ends, amid cautious sentiment, whilst Fed members were concerned on the market movement, and would try to give a clearer picture on the policy stance going forward.
• Malaysian government bonds posted gains particularly along the curve bellies, amid active market. We noted offshore players continued bidding the 7-year MGS, whilst local players were net sellers of the 7-year benchmark. Apart from that, GII Mar’21 remained upbeat and traded lower by 1bp to close at 4.09%.
• Thai government bonds garnered gains along the curve, whilst the long end 15-year government bond yield notably fell by 6bps to 3.94%. Market focus was on 5-year government bond, which eventually contributed THB12.5 billion worth of trading volume on Wednesday.
• Indonesia bond market was closed on Wednesday due to Legislative Election.
• Asian dollar credit market was actively traded as sidelined cash flowed into the market. Chinese property credits were traded higher as Wanda Nov’18 rose to 98.52 from 98.36pts earlier, and Cifi Apr’18 garnered gain of 0.21 to 107.20pts. Aside, financial paper also strengthened as Bank of Baroda Jul’19 inched up by 0.04 to 103.15pts, whilst newly issued Siam Commercial Bank edged up from 100.71 to 100.85pts.

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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