CIMB Daily Fixed Income Commentary - 19 June 2014

Market Roundup

• US Treasuries posted decent gains following the dovish statement made by the Federal Reserve in FOMC meeting. Also, Fed’s chief Yellen mentioned that the recent arising inflation as “noise”.
• Malaysian government bond market remained quiet during midweek, despite trading volume inched up to RM1.8 billion. Market focus was on GII Nov’17, which was actively traded totalling RM600 million, while yield was left unchanged at 3.67%.
• THB denominated government bond yields hovered at prior levels alongside the MPC meeting on Wednesday. We saw thinner flows of trading done, as the volume shrank by Bt5 billion to Bt12 billion. Aside, trading interest was concentrated on LB196A, which garnered Bt4.3 billion worth of volume, while yield marginally rose by 0.75bps to 3.1375%.
• IDR denominated government bond kept moving in negative area on Wednesday, with yields rose by up to 6bps on the day. Rupiah continued to weaken as well and ended close to its psychological level of 12,000. At this juncture, there were no fresh local drivers, while players awaited the Fed meeting result which may see the policy makers further cut its stimulus. Apart from that, players also concerned on the Fed statement regarding the time frame set for interest rate hike.  
• Asian dollar credits were seen traded in sideways, amid improved market sentiment, as some investors were seen picking up the cheaper bonds. The newly issued Far East perps touched the new high of 101.10pts on Wednesay, while PTTEP perps inched up from 100.43 to 100.45pts.

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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