Market Roundup
- US Treasuries recovered a tad on buying-on-dips activities, pairing with better demand amid decline in stock markets early the week. DJIA and S&P 500 fell by 0.46% and 0.65% respectively on Monday. We think the past couple of days’ surge in UST yields was first led by Euro Zone bond effect. Our end-June target for the 10T is 2.30%.
- Ringgit govvies were under knee-jerk selling pressure post solid US employment data release on Friday, in conjunction with the steep depreciation of MYR against USD beginning of the week. On the other hand, GG segment surprisingly dealt relatively firm, with better bidding interest on selective longer dated papers.
- Thai sovereign yield curve closed steeper amid weak sentiment, driven by the surge in UST yields last Friday. However, we noted decent support across the front end of the curve, as the yields were well anchored and closed near to the prior levels.
- Indonesia government bond market opened weaker post-US NFP data with yield curve went up 15bps on opening. BI held buyback auction on Monday, target was IDR1 trillion. Incoming offer was IDR5.18 trillion and BI absorbed IDR475 billion. Market supported initially after buyback auction, however prices keep sliding until current level with bond auction looming today (MoF target IDR10 trillion). Trading volume improved to IDR11.2 trillion.
- Asian credits widened amid thin flows, as sentiment was dented by the surge in UST yields due to the solid US employment data last Friday. In addition, subdued trade data from China also weighed on the bearish sentiment. Newly issued Woori Bank 30NC5 was seen quoted at 5.2%, about 20bps wider than 5.0% priced last week.
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