CIMB Daily Fixed Income Commentary - 27 June 2014

Market Roundup

• US Treasuries continued to strengthen, particularly along the long end, while players were seen with decent buying interest post FOMC meeting as Fed reveal its accommodative stance.
• Malaysian government bonds were held pretty unchanged, while daily volume further shrank to RM1.2 billion, from RM1.4 billion on midweek. WI of the 20-year GII auction was last heard at 4.75/55%.
• Thai government bonds hovered at previous day’s levels, amid decent support from both local and foreign players. Total transactions fell significantly by Bt590 million to Bt12.3 billion on Thursday. We noted decent trading interest along the curve belly, pressuring the yields lower by 0.25-0.50bps.
• IDR denominated government bond market still moved in negative territory on Thursday. Actually there was no driver but players were seen still showing their net selling interest ahead of local economy data such as inflation rate and trade balance that will be released next week. Meantime, players also reduced their activities in the market, indicated by decreasing volume to IDR7.45 trillion only from previous day of IDR11.92 trillion.
• Asian credits were hovering at prior levels, while seeing better trading interest along the newer issues, amid thin flows on Thursday. Krung Thai Dec’24 widened by 1bp to 334bps, and China Hongqiao pared gains of 0.65pt to 103.28pts.