CIMB Daily Fixed Income Commentary - 12 June 2014

Market Roundup

• US Treasuries posted little gains amid some buying-on-dips activities, after seeing the yields surged higher earlier this week.
• Malaysian Government Bond yields stood firm at prior levels, amid thin trading volume amounting to RM605 million on Wednesday. We noted foreign buying interest on the longer dated 20-year MGS, while showing selling interest along the belly. The new 7-year GII benchmark was again left untraded, while WI inched up to 4.13/10%.
• Thai Government Bonds hovered at Tuesday’s levels, while the front end yields inched down on the back of stronger buying from both local and foreign players. Total trading volume spiked to Bt25 billion, compared to Bt8.7 billion on Tuesday. Market focus was on LB196A, which was seen actively transacted by Bt17 billion.
• IDR denominated government bond market ended with slightly higher yields on Wednesday. Due to the lack of market driver, the market changed insignificantly relatively. Govvies experienced strengthening early the day but some players were seen taking profits, paring gains. Overall, the market booked large volume amounting IDR17.13 trillion, increasing from previous day of IDR10.70 trillion. We noted that around 60% of the volume was contributed by four benchmark series. Moreover, the same with a day before, players also showed their preference to trade shorter dated bonds such as SPNS series and sukuk retail.
• Asian credits were seen trading in sideways, however we saw financial names were under pressure and further weakened during midweek. Exim Bank of India Oct’19 was traded 3bps wider to 170bps, while Exim Bank of Malaysia Feb’19 and Kasikornbank Oct’19 widened by 2bps each to close at 95bps and 171bps.

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