CIMB Daily Fixed Income Commentary - 22 April 2015

Market Roundup

• US Treasury yield curve ended marginally steeper, with longer dated bonds extended losses, as market downplayed the concerns on Greek debt issue, after seeing the central bank ordered the government-linked companies and pension funds to channel liquidity to itself.
• Malaysian government bond market saw heavier trading interest, aided by the reopening auction for the 7-year SPK. The RM2 billion auction ended with a moderate bid-to-cover ratio of 2.31x, while yield averaging at 4.038%, in between the spread of 3.994-4.058%.
• THB denominated government bond yields inched higher along the curve, amid heavier trading volume totalling Bt14.9 billion, compared to Bt10.4 billion recorded on Monday. LB196A and LB25DA were in the limelight, garnered Bt8 billion combined volume throughout the day.
• Indonesia government bond market was offerish at open as USDIDR shot up to 12,950 level. Yield curve went up parallelly initially, however on London opening hours market was well bidded, with some buying flows were seen along FR70 (10-year) and FR71 (15-year) benchmark bonds, capping the sovereign yields upward movement from belly to long end of the curve. Elsewhere, trading volume improved to IDR 8.7 trillion on Tuesday.
• Asian credit market was held steady, while Chinese property names were under thin pressure, after Kaisa defaulted its coupon payments. Kaisa Sep’17 and Mar’18 traded lower at 57.95pts and 57.76pts, down from 61.50pts and 59.02pts respectively a day before. Aside, Longfor Jan’23 dipped from 102.04pts to 101.58pts, while Agile perp dealt 0.04pt lower at 82.15pts.