US Treasuries were traded in the lower ranges, weighed by buying-on-dips interest, despite the positive economic data releases on Tuesday.

Market Roundup

• US Treasuries were traded in the lower ranges, weighed by buying-on-dips interest, despite the positive economic data releases on Tuesday. Risk sentiment remained intact, with DJIA further climbed to the new high at 18559.
• Malaysian government bonds were well supported, amid heavier net buying interest in GII space. We saw persistent demand in GII papers due to the better yield pickups, alongside the gains in short dated MGS papers. However, trading activities were relatively quiet, with daily volume totalling RM3.5 billion. The central bank announced reopening auction for the 5-year GII with an issue size of RM3.5 billion. WI was heard at 3.37/32%.
• Thai bond market closed on Asarnha Bucha Day.
• Indonesian government bond market rallied following bond auction result announcement, where government received IDR46.85 trillion of incoming bids, indicating high demand from bond investors. Government upsized the issuance to the max at IDR18 trillion from IDR12 trillion initial target. The 5-year FR53 received the highest amount of bid, accounted for 43.7% from total incoming bids, and recorded bid-to-cover ratio of 5.06x. We think the bond market uptrend will continue ahead of Thursday's BI rate decision. Market volume increased significantly to IDR13.1 trillion and the most traded bonds were those maturing in over 10 years (71%).