Market Roundup
- US Treasury yields pared lower, reacting to the couples of disappointing economic releases on Thursday. Also, we think that the dovish FOMC minutes continue weighing on the UST yields.
- Malaysian government bond market remained quiet, as daily volume dropped further from RM1.4 billion to RM1.3 billion on Thursday. On top of that, we noted the government bonds were range-trading, as players remained sidelined, while awaiting for the upcoming CPI report ahead of weekend.
- Thai sovereign yield curve ended flatter on Thursday, tracking the gains recorded in overnight UST. In addition, early this week, the National Economic and Social Development Board lowered the economy growth forecast from 3.5-4.5% to 3.0-4.0% for 2015, may continue to draw buying support in the short term, in our opinion.
- Indonesia government bond market softened on Thursday’s opening amid lacking of bidding interest, sending the yields up by 3-6bps on average. However market rebounded after S&P raises outlook on the nation's credit rating to positive from stable. Market players chased mostly benchmark bonds across the bellies and far end of the curve, pushing the yields down and near to the previous day's levels. Elsewhere, trading volume jumped to IDR13.3 trillion.
- Secondary trading in Asian credit market was supported by the dovish FOMC minutes, while flows led by the recent new issues. China Minsheng Bank May’18 dealt 3bps tighter at T+166bps, while Korea Development Bank traded 1bps tighter at T+67bps.
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