CIMB Daily Fixed Income Commentary - 09 January 2015

Market Roundup

• US Treasuries extended losses, after the equity markets rebounded from recent decline, pairing with recovery in oil prices. DJIA and S&P 500 indices rose by about 1.8% each on Thursday.
• Malaysian govvies recovered losses, driven by better support after the falling oil prices trajectory halted, pairing with stabilizing USD/MYR. Market remain active, despite daily volume dropped from RM4.9 billion to RM3.7 billion, while market focus was MGS Sep’21, which contributed a decent sum of RM829 million on Thursday.
• Thai govvies posted little gains, amid thinner buying interest due to the tighter levels, while offshore players net sold Bt3.6 billion on Thursday. Apart from that, total transaction fell significantly from Bt33.5 to Bt11.0 billion. LB446A was under selling pressure, closed 5bps higher at 3.71%.
• Indonesia government bond market traded up on foreign buying flows, market stronger since opening started with FR70 (10yr) and FR68 (20yr), followed by other series mainly in medium-to-long tenure bonds. Market kept going up until afternoon session, helped by lack of supply in a biddish market. Trading volume increased to IDR 11.9 trillion from IDR 10.7 trillion on previous day.
• Asian credit market was better supported on Thursday, after traded wider earlier the week on bearish sentiment. Kaisa Jan’20 rebounded from the low of 31.99pts to 33.52pts, while 1MDB Mar’23 continued widening to 392bps, compared to 360bps a day before.