Market Roundup
- US Treasuries weakened a tad, following mixed economic releases ahead of weekend. Industrial production recorded a healthy 0.6% gain in July, while producer price moderated from 0.4% to 0.2% during the same period.
- Malaysian sovereign yield curve ended flatter, continued facing the headwinds during plunging Ringgit, after going through a short-lived recovery a day ago ahead of the 2Q2015 GDP announcement. USD/MYR rose sharply to 4.0805, from 3.9265 a week earlier.
- Thai government bond market was seen with thinner transactions totalling Bt19.4 billion, in contrast to Bt23.0 billion recorded a day before. Focus was on the shorter dated papers LB176A and LB196A, which contributed about half of the daily volume.
- It was a quiet day for Indonesian bond market on Friday ahead of this week's bond auction. Volume recorded was relatively low with no flows seen. We think defensive buying might emerge next week due to Tuesday's bond auction. Expect market players to bid in the auction at higher yield. Volume continued to fall to IDR 6.3 trillion only.
- Asian credits moved in sideways, after recovering some losses during mid-week. Shanghai Electric Aug’20 continued to tighten to near T+201bps, from T+220bps priced earlier. Meanwhile, iTraxx Asia ex-Japan IG Index widened by about 5bps to 116bps on Friday.
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