CIMB Daily Fixed Income Commentary - 28 May 2014

Market Roundup

• US Treasury yields remained close to the low levels in the year of 2014, after seeing the long end yields pressured lower by 2-3bps. However, front end of the curve were pretty firm, causing the yield curve further flattened on Tuesday.
• Malaysian government bond market was muted, while players were still sidelined despite the reopening of the 10-year MGS, which was announced at the size of RM3 billion. WI was left untraded at 4.05/01%.
• Thai government bonds continued to record net selling activities from foreign players, while the yields edged up by 1-5bps amid strong support from the local players. On the other hand, trading volume rose by 7% to THB1 trillion, while CB14828B contributed a sum of THB18 billion trading value on Tuesday. Aside, we saw decent trading interest along the sovereign curve belly, such as LB196A and LB176A.
• Indonesian market closed on Tuesday’s Isra Mihraj Nabi Muhammad public holiday.
• Asian dollar credit spreads tightened in general, boosted by the real money buying activities on Tuesday. IG names were pretty firm, as Sun Hung Kai Feb’24 tightened by 3bps to 187bps, EXIM Bank of India was traded 1bp tighter to 181bps, and Petronas Aug’19 was also quoted 6bps tighter to 94bps. On the flip side, Thai credits remained under pressure due to the negative market sentiment against the coup staged.

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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