CIMB Daily Fixed Income Commentary - 06 May 2014

Good Morning,

Market Roundup

• US Treasuries posted losses on Monday, triggered by profit taking activities after seeing the yields dipped decently over the last two trading sessions.
• Ringgit sovereign bond market remained decent, as the trading volume surpass RM3 billion on Monday. Malaysian government bond yields dipped, led by foreign buying interest, particularly along the 5- and 10-year MGS. Apart from that, GII Mar’21 and Dec’14 were also seen with decent demand.
• Thai market closed on Monday’s Coronation Day.
• IDR denominated government bond market unmoved on Monday. On the day, GDP data in the first quarter released. Central Bureau of Statistics (BPS) reported that GDP grew by 0.95% QoQ or 5.21% YoY, below consensus of 5.4% YoY. After the announcement, the market still hovered at its previous level. Players were seen taking wait-and-see stance before BI rate announcement and there was no main driver to guide the market on the day. We see the market may still not change substantially as lack of drivers.
• Asian credits were thinly traded, led by several market closed on Monday. Market performed relatively decent despite the sentiment was negatively impacted by the weak China’s manufacturing PMI in April. Kaisa Apr’16 was traded higher to 99.67, from Friday’s 99.48pts, whilst EXIM Bank India Oct’19 tightened by 1bp to 220bps on Monday.

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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