CIMB Daily Fixed Income Commentary - 12 November 2014

Market Roundup

• US market closed on Veterans’ Day. A day ago, US Treasuries closed weaker ahead of Tuesday holiday with drivers in the coming week being US government auctions to gauge current demand for the safer haven US securities.
• Ringgit sovereign bonds hovered at prior levels, while players preferred to stay at sideline heading towards 3Q2014 GDP report this Friday. Aside, market did not react to the latest industrial production data point, which came a tad lower at +5.4% in September, in contrast to +6.5% a month ago, and slightly lower than consensus view of +5.5%.
• Thai government bonds extended gains, supported by the strong net buying interest from asset managers and local players, albeit some net selling activities initiated by foreign players. Total transaction rose from Bt10.8 billion to Bt13.6 billion.
• Tuesday was uneventful day for Indonesia government bond market, as only few trades seen in market. Total traded volume today only reached IDR 5.54 trillion, substantially lower than the same day last week which reached IDR 16.74 trillion. The most actively traded bonds were the benchmark bonds with exceptions of Sukuk retail SR006 and T-bill Feb’15. Market players look to be sidelined ahead of Thursday's BI MPC meeting.
• Quiet trading day for Asian credit market, led by muted primary market heading towards US Holiday on Tuesday. Expect Asian dollar credits to hover at current levels on Wednesday amid a lack of guidance from US market.