CIMB Daily Fixed Income Commentary - 25 March 2015

Good Morning,

Market Roundup

• US Treasuries extended gains, despite economic releases turned out to be decent on Tuesday. The 10T yield declined 4bps and closed at 1.87%, after hovering in between 1.90-1.91% in the afternoon session.
• Malaysian government bond yield curve ended steeper, guided by heavier buying flows in conjunction with the Ringgit strengthening. USD/MYR dipped and tested the support of 3.6450 late Tuesday.
• Thai government bond yields inched lower along the curve, well supported by net buying interest from offshore players, as USD/THB seen well supported at 32.50, while tested the intra-day high of 32.60 on Tuesday. On the flipside, daily volume came a tad higher totalling Bt14.1 billion, in contrast to Bt12.5 billion garnered in prior day.
• Indonesia government bond market traded up on strengthening Rupiah, foreign banks were seen buying all benchmark bonds on Syariah auction day. MoF held IDR Syariah bond auction on Tuesday with IDR2 trillion indicative target, received IDR3.25 trillion incoming bid and decided to absorb IDR1.975 trillion of Syariah bonds with largest incoming bid volume went to 5m SPN-S bills (IDR500 billion issued, btc: 2.76x). Trading volume jumped to IDR15.33 trillion.
• Focus was along the new primary deals in Asian dollar credit market, after the primary market stayed muted last week due to the market uncertainty driven by FOMC meeting.