Market Roundup
- US Treasuries strengthened, reacting to the declines in stock markets and crude oil. DJIA fell by almost 1% to 17542, whilst Brent crude oil dipped from $39.84/bbl to $39.43/bbl. The 10T yield slipped and closed at 1.69%, pretty near to the recent low of 1.66% achieved in Feb.
- Malaysian sovereign bonds continued to consolidate, amid a lack of fresh catalyst at this juncture. On the other hand, we noted some foreign players tapping on the front end of the curve, providing some support to the short dated papers. The RM3.5 billion 7-year GII reopening auction ended with decent demand, indicated by a bid-cover of 2.686 times. Average yield stopped at 3.932%, within the range of WI 3.935/91% quoted a day prior the tender closed.
- Thai government bonds weakened, amid thinner trading flows, as daily volume dropped from Bt65.6 billion to Bt27.2 billion after market reopened on Thursday. Focus was on long dated LB446A, which transacted by Bt7.8 billion throughout the day.
- Indonesian government bonds bull flattened on buying actions by both local and foreign names on longer end of the curve. Local pension funds were especially seen buying on 20-year bucket, market went up as players hunted for supply on those tenors. News on better FX reserves for March ($107.5 billion vs previous $104.5 billion) should be well received. However BI looks to pause easing cycle, as they said they want to see the impact on growth and inflation before next cut. Market volume jumped to IDR19.9 trillion.
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