CIMB Daily Fixed Income Commentary - 23 Jun 2015

Market Roundup

• US Treasury yields surged, pairing with gains in global stock markets, triggered by the optimism over the possible breakthrough in Greek bailout, after the Greek government submitted the latest budget proposal to the creditors early the week.
• Malaysian government bonds closed marginally firmer on Monday, with yields inched down by up to 1bp across the curve. On the other hand, daily transaction was decent, totaling RM2.3 billion, while flows concentrated on short dated papers.
• Thai govvies pared gains amid muted market, as daily volume shrank from Bt14.7 billion to Bt7.2 billion. Aside, market is expecting the upcoming auction for LB616A (Bt7 billion), which is scheduled on Jun 24.
• Indonesia government bond market traded up on Monday as buying flows were seen mainly from offshore on the 10- to 15-year buckets, while locals also show bidding interest in the 2- to 3-year space. Market was biddish for most of the day, while we expect buying momentum to sustain heading toward today's bond auction. Volume was flat amounting IDR12 trillion.
• Asian dollar credit market held firmer, driven by optimism of Greek bailout last-minute negotiation, after the Greek Prime Minister Alexis Tsipras was reported that meeting the creditors on Monday. Aside, iTraxx Asia Ex-Japan IG Index tightened further by 3.8bps to 106.5bps on Friday.