Market Roundup
- US Treasuries posted little gains, alongside the lower German sovereign yield curve, on the back of dovish comment by ECB President Mario Draghi, who signalled that the central bank is willing to step up for further expansion in its stimulus programme to boost the subdued inflation. The 10-year German bund yield dropped by 5.8bps to 0.723% on Thursday.
- Ringgit govvies closed mixed, amid some profit taking activities on Thursday. Sentiment appeared to be improved, compared to a week ago, with the Brent crude oil stabilizing near $50/bbl, while market will be eyeing on the Friday’s foreign reserve number, as well as US NFP report for further guidance.
- Thai sovereign bonds ended in tight ranges, while trading activities remained heavy amounted to Bt24.5 billion. Still see selling pressure at this juncture, possibly driven by weaker THB, as USD/THB headed higher to 35.83.
- Indonesia government bond market was weaker on Thursday as interbank market trimmed positions amid higher USD/IDR, traded at 14160-70 level for most of the day. Market was jittery and some defensive buying was seen in 10-year tenors. We think market players try to stay light while waiting for more government stimulus plan announcement. Volume improved to IDR 13.9 trillion.
- Asian credit market was seen with thinner flows as China’s financial market closed for long holidays. iTraxx ex-Japan IG Index stood unchanged at 140bps. Expect investors to stay at the sidelines ahead of Friday’s NFP data.
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