Market Roundup
- US Treasuries pared losses, supported by some buying-on-dips interest on Thursday, while players were repositioning ahead of the NFP report. On top of that, market sentiment also improved alongside the recovery in Euro bond markets.
- Ringgit govvies extended losses, as players trimmed positions well ahead of the MPC outcome. Aside, IRS curve shifted higher amid heavier paying interest, mainly tracking overnight UST movement, while rate cut speculation eased, after seeing the March exports rebounded from negative territory.
- Thai sovereign yield curve ended steeper, amid heavy foreign selling pressure, while yields surged by up to 20bps along the curve, realigning to the higher overnight UST yields. We think that the shorter term bonds may see better support (anchored by the policy rate) at this juncture, particularly heading toward the US NFP release on Friday, which may exert further selling pressure if the job data appears to be decent.
- Indonesia government bonds continued to see sell-off activities triggered post GDP data release. Global market sell-off also added pressure to the government bond market as Janet Yellen commented on the high valuation of stocks and bonds prices. Meantime, BI was the only buyer spotted in the market. Transactions were relatively decent, considering low trades done in the last several days, while volume amounted to IDR13.5 trillion.
- Asian credit market ended with softer tone, as sentiment was dented by sell-off in both US Treasuries and global stock markets. We expect the weak sentiment to sustain heading toward the NFP release on Friday.
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