Market Roundup
- US Treasuries posted gains on Friday, supported by decent demand despite the increase in supply from 3T, 10T and 30T auctions over the week. The 10T yield dipped lower, before reaching the intraday-low of 2.17% and climbed a tad higher to close at 2.19%.
- Ringgit government bonds closed barely changed on Friday, and on razor thin volume of less than RM1.0 billion. Players were on the sidelines as we had the MPC late in the day. The closed market in Singapore also contributed to the quiet market, whilst the pretty stable Ringgit and decline in IRS rates took away the negative sentiment for the day. WI trading of the new 3-year MGS was also quiet, with levels last heard around 3.79/77%.
- Thai government bonds closed mixed, with short dated papers showing strength amid a firm THB currency mid-day. However, longer term papers still showed some weakness, especially amid the EM worries. Moreover, players digested the less than rosy foreign exchange reserves number, which fell to $154.8 billion up to 4 Sep from $155.77 billion as at end Aug. Some caution also took hold as we head closer to the MPC meeting next week. Foreign investors were net sellers of a small Bt88 million of THB bonds Friday.
- It was a quiet day in the IDR bond market on Friday, with Singapore on holiday. Despite low volume, bids were mostly defensive and market quotes were wide, around 100-150 bid-offer, in our opinion due to prevalent currency worries.
- Trading of Asian dollar credits were quieter Friday with Singapore on holiday. However, sentiment remained guarded as EM worries lingered on especially after the recent sovereign rating cut on Brazil. A rebound in Brazilian corporate bonds overnight and firmer Asian currencies on Friday did little to boost sentiment, as we head for the upcoming FOMC meeting.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.