Good Morning,
Market Roundup
- US Treasury yields dipped along the curve, whilst yields at the long ends declined decently by 7bps. 10T and 30T closed 2.54% and 3.38% respectively.
- Malaysian government bond market was seen with pretty decent flows, with total transactions amounted to RM3.6 billion. We noted strong selling pressure on the 5-year MGS, which pressured the yield upward by 10bps to 3.78% throughout the day. Aside, still saw some buying-on-dips interest along the 3-, 7- and 10-year MGS, which drove the yields lower by 4-5bps.
- Thai government bond market was seen with improved activities, as trading volume rose by 16% to THB1.09 trillion on Wednesday. Apart from that, we noted that foreign players showed better buying interest, after exerting net selling pressure over the last week. Meantime, players showed better demand in LB196A and LB176A with 3- and 5-year of maturity respectively.
- IDR denominated government bond posted gains on Wednesday as political uncertainty reduced. Unexpectedly, Gerindra party announced its coalition with PAN, and Hatta Rajasa (PAN Chairman) resigned as coordinating Minister for Economics on the day. Moreover, players took positive reaction after announcement of PDIP coalition with PKB and Nasdem.
- Chinese property credits strengthened during midweek, after PBoC wanted the domestic banks to accelerate in lending out mortgages. China Resources Feb’19 was traded 7bps tighter to 258bps, whilst Wanda Properties Nov’18 tightened by 3bps to 362bps on Wednesday.
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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