Market Roundup
- US Treasuries pared gains following the release of better-than-expected housing starts number, which recorded at 1206k in July, a tad higher than 1180k forecasted earlier. 10T yield touched the low at 2.14%, before rising to close at 2.19%
- Malaysian government bonds recovered a tad, alongside the lower USD/MYR, which ended at 4.0820, from 4.0995 a day ago. Aside, BNM announced the new 3.5-year SPK auction on Wednesday. Issuance size was smaller than expected at RM500 million. WI was last heard at 4.20% (bid).
- Thai government bonds extended gains, reacting to the flight for safe haven assets, triggered by the Bangkok explosion happened a day before. Meantime, the Bangkok SET Index closed 2.9% lower at 1372.
- Indonesia government bond market was quiet on auction day, with market players waited for trade balance data & BI rate decision. MoF targeted IDR 8 trillion in auction day, and absorbed 50% over target at IDR 12 trillion. FR73 (16-year) auction was cancelled. Some buying flows were seen in 10-year series, dragging down the yield on 7- to 10-year buckets. We think market is resilient, however the upside in bond market is still limited due to weak Rupiah. Volume jumped to IDR 15.1 trillion.
- In Asian credit market, Malaysian papers remained under pressure and quoted wider on Tuesday. Among the new issues, ICICI Bank Aug’20 tightened by 1bp to T+161bps, while Greentown Aug’20 widened from 5.89% to 5.94%.
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