Market Roundup
- US Treasury yields rose by 2-4bps across the curve, guided by profit taking activities amid improved risk-on sentiment, despite mixed economic data releases, lower crude oil prices and flattish equity performance.
- Ringgit govvies pared gains, reacting to the weaker Ringgit, driven by strengthening in USD, accompanied by surprise easing decision by MAS. On top of that, IRS rates also shifted higher by 1-4bps across the curve.
- The reopening auction for the 20-year MGS benchmark ended relatively weak in our opinion. The RM2.5 billion size was pretty much in line with our expectation, but bid-cover was fairly poor at 1.986 times. Meantime, the average yield of 4.242% was not far from WI of 4.25/10% heard a day prior, but it was nearer high between the auction high yield of 4.258% and a low of 4.197%.
- Indonesia government bond prices opened lower by 25-50 cents as USD/IDR shot up to 13,200 level, however buyers kept providing bids and able to support the market, with actions centred on local buying on 10-year benchmark FR56. Market was quiet for most of the day, awaiting today's trade balance data and full announcement of BI's plan to change its benchmark rate from BI rate to 7-day reverse repo rate. Market volume dropped sharply to IDR10.1 trillion.
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