CIMB Daily Fixed Income Commentary - 14 April 2014

Market Roundup

• US Treasury yield curve flattened, as strengthening momentum in the longer ends remained strong, whilst players took profit on the short end after rally, amid broader anticipation of prolonged rate hike decision in 2015.
• Malaysian government bond yields inched up along the short and medium ends, amidst profit taking activities. On the other hand, trading volume fell drastically from RM3.4 billion to RM1.3 billion ahead of weekend. Meanwhile, WI of 15-year GII was last heard at 4.60/4.50%.
• Thai government bond yields further declined by 1-7bps along the curve, as players continued speculating on the policy rate cut in the coming Monetary Policy Committee meeting. Market focus was on Bank of Thailand short dated papers, namely CB14717B, CB14O16A and CB14529A, which were last traded at 2.02%, 2.07% and 1.99%.
• CDS premium for 5-year Indonesia global bond was stable around 170 bps last week, whilst seeing its declining trend. 1-month NDF point for USD/IDR slightly increased to 55 pips on Feb 27, from 50 pips on prior trading day. USD/IDR fixing rate in Singapore (ABS) on Thursday was 11,604.
• Chinese dollar credits weakened on the back of the Chinese importers defaulted cases, as sentiment was pressured by the increased credit risks. Wanda Jan’24 edged down from the high of 101.83 to 101.53pts, whilst Agile Feb’19 fell by 0.18 to 100.15pts; however Citic Pacific Jan’23 rose by 0.26 to 105.51pts 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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