CIMB Daily Fixed Income Commentary - 17 October 2014

Market Roundup

• US Treasuries ended weaker on Thursday, scaled back some gains recorded in recent rally. 10T touched the intraday low of 1.98%, despite closed higher at 2.16%.
• Secondary trading activities in Malaysian government bond market remained upbeat, guided by positive buying flows in overnight UST. However, the buying interest only able to pressure the yields marginally lower. MGS Oct’15 (+16bps) and GII May’24 (-2bps) were actively transacted amounting to RM 2.5 billion, while closed at 3.56% and 4.09% respectively.
• Thai government bonds posted decent gains on the back of mid-week UST rally. Daily transactions moderated from Bt31.3 billion to Bt21.6 billion, amid net selling activities of foreign players in the market.
• Indonesia Government bond market was opened stronger as UST continue to rally. After Europe market open, we saw selling flow in 10y and 15y off the runs, sending yield curve higher compared to yesterday closing.
• Asian dollar credits dealt weaker amid risk-off sentiment, particularly along the lower rated long dated papers, as Citic Pacific perp edged down from 115.03pts to 114.62pts. Still seeing some positive flows on bargain deals despite weaker sentiment. On the other hand, Korean names were well supported by the market, as Korea Gas Jul’26 tightened by 13bps to 106bps, while Korea National Oil Jul’24 traded 13bps lower at 101bps.