Fixed Income Weekly Pulse, 29 September 2014

 Highlights of the week:

•                    US new home sales beat the consensus with a solid print of an annualized pace of 504k – a six-year high

•                    Germany’s task of returning to growth in the 3Q2014 gets tougher as business optimism fell more than expected

•                    Japanese government bond prices were mostly higher, taking cue from a fall in yields on German Bunds and US Treasuries

•                    The looming US monetary tightening is one of the major challenges of the Joko-Widodo-led government

•                    Bank Negara Governor Zeti said that the 2014 real GDP growth will likely to exceed 5.0-5.5%

•                    Local govvies prices seemed to be trapped, possibly due to the weaker Ringgit and lack of economic data to support a rally