Monday, August 10, 2015

CIMB Daily Fixed Income Commentary - 10 Aug 2015


Market Roundup
  • US Treasury yield curve ended flatter, driven by a decent NFP report on Friday. Short dated 2T yield edged higher by 2bps, amid increased confidence of a September rate hike. Meanwhile, the longer end yields shifted lower, in conjunction with the falling crude oil prices and softer inflation outlook on a long term prospect.
  • Malaysian sovereign bonds extended losses alongside the weaker Ringgit on Friday, while sentiment remained guarded ahead of the releases of FX reserves and US NFP report. The FX reserves dropped from $100.5 billion to $96.7 billion for the week ended Jul 31.
  • Thai government bond market remained muted on Friday, as players preferred to stay sidelined ahead of the NFP report. Elsewhere, trading volume inched down from Bt12.7 to Bt11.9 billion.
  • It was a quiet day with better selling mode seen in Indonesia government bond market ahead of Friday's US jobs data. People remained sideways amid IDR currency weakening. However, support buying was still seen in short end tenors. We keep the view that market remains shorter duration. Volume fell sharply to only IDR 4.5 trillion.
  • Asian credit market moved in sideways amid thinner trading interest during the Singapore SG50 holiday. Meanwhile, iTraxx ex-Japan IG Index widened by about 1.5bps to 114bps ahead of weekend.


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