FW: RHB FIC Rates & FX Market Update - 17/4/14

17 April 2014

Rates & FX Market Update

DM Bonds Mixed on Escalating Ukrainian Tensions; Yellen Remained Dovish on Uncertain Economic Outlook

Highlights

¨    US: Yellen continues to ease concerns on an early rate hike; Industrial output beats expectations in March; DXY stayed firm

¨    UK: Unemployment rate fell to its lowest in over 4 years; GBPUSD may return gains as unemployment optimism fades

¨    Eurozone: Region current account balance narrowed; 10y PGB yields at 5y low; 10y Bund reopening met weak demand

¨    Japan: IP slowed to 7.4% in February; JGBs traded firmer on the long end; JPY to weaken further towards 103/USD

¨    Australia: Westpac Leading index showing sub-growth economic trend; AUD strengthened but likely to range trade in session ahead

¨    Singapore: NODX declined in March; SGS remained stable; SGD gained 

¨    China: 1Q14 growth moderated to 7.4% y-o-y underpin by strong retail sales; healthy demand for 10y CGB reopening 

¨    Malaysia: MGS little changed; inflation elevated on continued spillover effects of subsidy rationalization and power tariff hike

¨    Thailand: Thai Election Commissioner plans for the general election in late July; 5y & 10y ThaiGB gained; THB to test 32.00/USD in the near term 

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