US Treasuries further weakened, alongside with higher crude oil and stock prices, amid growing optimism that UK will remain in the European Union.

Market Roundup

• US Treasuries further weakened, alongside with higher crude oil and stock prices, amid growing optimism that UK will remain in the European Union. DJIA revisited 18000 after hitting the recent low at 17471. Dallas Fed President Robert Kaplan signaled that the Fed should move in “gradual and patient manner”, whilst mentioning that the monetary policy has become more difficult in supporting the economic growth in the low neutral rate environment.
• Ringgit govvies were dealt firmer in conjunction with stronger Ringgit (USD/MYR trended lower and hovered near 4.1650 late Thursday), aided by higher crude oil prices amid improved risk-on sentiment. On the other hand, daily volume was moderate at RM3.1 billion, despite seeing little movement in the bond prices. The official Brexit referendum result will be announced by around 2pm (Malaysia time), but polling results in different areas will be released by stages in the morning. We reckon that both Ringgit and Ringgit govvies will be well supported if UK successfully remains in the EU.
• Thai sovereign bonds weakened a tad across the curve, as players trimmed positions amid cautious sentiment heading into Brexit referendum scheduled on Thursday. Apart from that, trading activities were muted, as daily volume shrank to Bt10.0 billion from Bt15.9 billion garnered a day prior.
• Indonesian government bonds were traded slightly firmer ahead of Brexit vote, whilst activities during opening session were mostly seen on all benchmark bonds, led by banks. In the second half of the day, market was very quiet, most of players stayed at the sidelines, awaiting Brexit voting result to be announced on Friday. The result will surely trigger the movement of global markets. Market volume decreased to IDR9.6 trillion and was dominated by bonds maturing in over 10 years (67%).