Friday, April 11, 2014

CIMB Daily Fixed Income Commentary - 11 April 2014


Market Roundup
  • US Treasury yields further dipped along the curve, as market players noted that Fed members continued to see weaknesses in labour market in the latest FOMC meeting minutes. However, we view that there may be profit taking activities, particularly on the longer ends, after rallying in the last few trading sessions.
    • Market focus was on the 7-year GII and 7-year MGS benchmarks, both were seen with good demand, particularly from the offshore. Meantime, active transactions noted on Thursday, as trading volume remained high at RM3.4 billion.
    • THB denominated government bonds garnered decent gains of 1-5bps along the curve. Meanwhile, trading volume edged down by 2% to THB1 trillion on Thursday, whilst market focus was on short dated TB14514A and CB14703B, which were last traded at 1.99% and 2.03%.
    • Government bond market opened softer as IDR currency weakened. However market recovered some of its losses especially in afternoon session. Local players were seen buying fr68 (20y benchmark bond) in the market. Trading volume eased to IDR 11.36 trillion on Thursday from IDR 13.21 trillion on Tuesday. Investors focused on FR68 (maturing in 2034) and FR70 (maturing in 2024) that controlled 33% of market share.
    • Asian dollar credits were firmer on Thursday, as investors continued to show net buying interest. Chinese credits were traded a tad lower amid news of softer exports, whilst the iTraxx Asia ex-Japan IG Index tightened by 3bps to 118bps.


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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