Market Roundup
- US Treasuries extended gains alongside the downward trending crude oil prices, pairing with demand for safe haven assets in conjunction to the stock market declines. DJIA fell steeply by 3.1% to 16,459 on Friday.
- Ringgit government bonds were dealt mixed on Friday, while players were seen with better bidding interest on selective short dated bonds. Daily trading volume was mild at RM2.3 billion. Into the short term horizon, we reckon that the upside for government bonds may be limited amid the still jittery sentiment along the forex markets.
- Thai govvies posted losses, alongside the weakening THB, as USD/THB rose further to end near 35.70 on Friday. Meantime, daily volume increased a tad from Bt17.9 to Bt19.2 billion.
- Indonesia government bonds were on selling pressure on Friday morning as USD/IDR traded as high as 13,950. BI conducted a reverse auction on all benchmark series, absorbed IDR 2 trillion from IDR 3.5 trillion incoming offer. MoF was seen buying back short dated papers. Selling pressure in government bond market eased in the afternoon as USD/IDR strengthened to 13,920. We expect to see some technical rebound in bond market this week; however we would remain cautious as there is no sign of recovery in IDR. Volume remained huge amounting IDR 17.7 trillion.
- Asian dollar credit market ended weaker on Friday amid jittery sentiment triggered by the selloff in global stock markets. iTraxx ex-Japan IG Index widened by 5bps to 129bps ahead of weekend.
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