CIMB Daily Fixed Income Commentary - 08 Dec 2015

Market Roundup

• US Treasury yields fell on the heels of plunge in crude oil prices, in conjunction with flights for safe-haven assets amid US stock market decline. The Brent crude oil fell steeply and hit the low at $40.60/bbl, from $43.00/bbl recorded on last Friday.  
• Malaysian government bonds saw lighter trading volume and closed barely changed from the previous trading session. A firm MYR in the morning did not stir prolonged interest into bonds especially as MYR moved weaker by the afternoon session to hover above the 4.2200 level. Some pressure on govvies were also felt as interest  looked towards higher yields offered in the PDS segment boosted by a surge in primary offerings in the past 1-2 weeks.
• Thai bond market closed on the King's Birthday.
• Indonesian government Bond went nowhere, traded mixed on quiet market with no catalyst seen this week. We expect most of market players to be sidelined until next week's US inflation data, FOMC, and BI rate decision. Market volume continued dropping to IDR 5.62 trillion.
• Asian dollar credits were rangebound with the iTraxx Asia ex-Japan high grade index barely changed. There was a lack of fresh market drivers especially with last week’s smallish UST gains and ahead of FOMC this week.