Market
Roundup
- US Treasuries showed little movement by the close as cautious trades prolonged ahead of Friday’s jobs data. Meantime, the Fed released its Beige Book report, which indicated economic activity moving at modest to moderate pace at the Fed’s districts. Also, the ISM non-manufacturing index was released showing a rise to a reading of 56.3 in May from 55.2 the month before and beating earlier consensus of 55.5.
- The Euro continued to consolidate ahead of the ECB meeting, hovering this morning at 1.3603 against 1.3619 overnight. The Euro was also pushed down upon the release of stronger than expected US non-manufacturing ISM data.
- On Wednesday, Malaysian Government Bonds ended weaker but done on razor thin flows of less than RM1.0 billion. Sentiment was only under pressure after overnight losses along the US Treasuries market (UST rose 5-7bps along the longer tenors ahead of this week’s non-farm payrolls numbers).
- Thailand government bonds ended rangebound, supported by firm Baht but stronger gains were deterred amid a govvies auction held on the day. The government sold Bt16 billion of 10-year bonds (maturity Jun’23) seeing decent demand on bid-cover of 2.02 times. Accepted yield levels was 3.647-672%. Elsewhere, onshore IRS rates trekked 2-3bps higher, no doubt seeing the overnight rise in UST yields.
- IDR denominated government bonds moved mixed on Wednesday. The market was still influenced by the worse-off trade balance data announced the previous day. Meantime, the rupiah also weakened with rate close to 11,900. Although, there were no another fresh drivers to guide the market, trading volume was still relatively heavy totaling IDR12.40 trillion versus IDR13.48 trillion a day ago. More than 40% of volume was donated by 5-year FR69 and 10-year FR70.
- Asian dollar bonds saw active participation with spreads moving mixed, whilst interest was aided by this week’s activity along the primary market.
Best
Regards,
CIMB Fixed Income Research
Corporate Banking, Treasury and Markets
Tel: +603 2261 8888 | Fax: +603 2261 8705
www.cimb.com
Connect with us on Facebook: www.facebook.com/CIMBGroup or follow us on Twitter: www.twitter.com/CIMB_Assists
CIMB Fixed Income Research
Corporate Banking, Treasury and Markets
Tel: +603 2261 8888 | Fax: +603 2261 8705
www.cimb.com
Connect with us on Facebook: www.facebook.com/CIMBGroup or follow us on Twitter: www.twitter.com/CIMB_Assists
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