CIMB Daily Fixed Income Commentary - 23 April 2014

Market Roundup

• US Treasuries posted gains on the longer ends, whilst shorter end papers were slightly under pressured, due to auctions held this week.
• Malaysian sovereign bond market remained muted amid lacking of major market driver. However we noted some thin two-way flows on MGS Sep’21 and GII Mar’21. At this juncture, still seeing better buying interest along the shorter tenure papers, namely GII Dec’14, MGS Nov’19 and Apr’14. We view that players were mostly waiting for government bond issues in the remainder of April.
• THB denominated government bond market was relatively active, with 5% higher in trading volume, led by strong buying interest from asset managers. Market focus was on the CB14724B in SA segment, whilst LB145B was the most actively traded government bond on Tuesday.
• IDR denominated government bond market ended with higher yields across the curve especially longer dated benchmark series such as 10-year FR70, 15-year FR71, and 20-year FR68. Foreign players were seen exerting selling pressure on the day. In general, volume improved to IDR11.60 trillion from IDR4.20 trillion only in the previous day. We think the market may still move in range as players seem to trade cautiously.
• Asian dollar credit market was quiet as investors remained sidelined whilst waiting for the China Manufacturing preliminary PMI in April. Secondary market was seen with thin flows as players were mostly waiting for new issuances from the pipelines.

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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