CIMB Daily Fixed Income Commentary - 31 March 2015

Good Morning,

Market Roundup

• US Treasury yields dipped a tad lower following mixed economic data releases on Monday. We think that upward movement in UST yields is likely this week, especially ahead of the key statistics from NFP and unemployment rate slated for this Friday. Strong resistance still at 2.30% for the 10T, and after that at 2.40% into next couple of weeks.
• Malaysian sovereign yield curve ended marginally flatter, led by thin profit taking activities on Monday. Meantime, the IRS rates showed some upticks on selected tenors, while front end of the curve ended flat, as the 3-month KLIBOR anchored at 3.73%.
• Thai govvies continued to strengthen, following the weak February export number reported late last week, coupled with end-quarter demand. On top of that, we think that players further priced in outlook for a rate cut. Meantime, daily transaction dropped significantly from Bt40.2 billion to Bt12.8 billion.
• IDR government bond traded on softer tone ahead of today's bond auction. Generally volume was thin on Monday with little position trimming action conducted by banks, in order to make room for today's auction. MoF is targeting to issue IDR10 trillion bonds during the auction, with 2 new issuances (3-month & 12-month SPN bills) and 2 reopening series (10-year FR70 & 20-year FR68). Total volume dropped sharply to IDR7.48 trillion only.
• Asian credits dealt slightly firmer on Monday, led by some month end demand. In China HY segment, Kaisa Mar’18 and Evergrande Oct’18 tightened to 59.07pts and 92.59pts, while Times Property climbed from 95.58pts to 95.67pts. However, China Shansui Mar’20 dipped from 100.15pts to 100.01pts.