Market Roundup
- US Treasuries recovered losses, guided by weaker-than-expected readings from housing and manufacturing data, coupled with decline in oil prices and stock market, amid risk-off sentiment heading into FOMC meeting.
- Ringgit govvies moved in sideways on Monday. Flows were slanted towards the front end and bellies of the curve, while market awaited the FOMC meeting outcome, and the 20-year GII auction this week.
- Thai govvies were dealt firmer, aided by subdued trade data releases as well as PBoC stimulus move late last week. Despite that, foreign players remained net sellers, in conjunction with weaker THB, by recording total net selling amount of Bt2.88 billion on Monday, heavier than Bt1.44 billion registered last Thursday.
- Indonesia government bonds were well absorbed in a thin market on Monday, with foreign interbank names show buying interest in bonds maturing in 10-year and 20-year especially benchmark bonds. MoF will be holding bond auction today with IDR7 trillion indicative target, IDR1 trillion lower than previous auction. Demand could come from offshore investors post-ECB news. We think today's bond auction and upcoming FOMC meeting will dictate market direction this week. Volume improved a tad to IDR 6.2 trillion.
- Asian dollar credits were well supported on the back of surprise easing from PBoC last week, but gains were capped by expectation of growing pipelines as well as more cautious approach heading into FOMC meeting scheduled this week. iTraxx ex-Japan IG Index tightened by about 4bps to 131bps on Monday.
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