CIMB Daily Fixed Income Commentary - 22 May 2014

Market Roundup

• US Treasuries posted losses post release of FOMC minutes on Wednesday, as players were concerned on the discussion held by the policy makers, on the path of tightening the central bank’s monetary policy, despite no specific decision was made on the timeline and approach.
• Malaysian government bond market remained quiet, while yields declined a tad lower, amid stronger buying interest on the curve belly.
• In contrast, THB denominated government bond market was pretty stable as compared to the Tuesday’s sell down. Trading volume surged by approximately 9% to THB982 billion during midweek. Aside, market focus was on the shorted dated bonds in SA segment, which included CB14N20A, CB14821B and CB15409A.
• IDR denominated government bond market weakened on Wednesday, while there was no other domestic driver after final announcement of president and vice president candidacy, along with coalition. Meantime, the market was seen waiting for the Fed meeting minutes, hence seeing the trading volume declined to IDR8.60 trillion from IDR10.54 trillion a day before. The benchmark series FR70 was heavily traded about IDR1.17 trillion, whilst other benchmark series were traded thinly. We also saw that several off-the-run series booked hefty volume on the day.
• Asian dollar credit market was fairly quiet, as investors were sidelined ahead of the release of the Fed minutes. Meanwhile, we saw Thai names recovered earlier losses, supported by the buying-on-dips activities. Thai Oil Jan’23 tightened by 3bps to 230bps, while Ratchaburi May’19 was traded 5bps tighter to 165bps.

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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