US Treasury yields edged higher across the curve, in conjunction with stock market gains. However, market appeared to be directionless amid a fresh catalyst, ahead of the upcoming FOMC meeting scheduled on 26-27 Jul.

Market Roundup

• US Treasury yields edged higher across the curve, in conjunction with stock market gains. However, market appeared to be directionless amid a fresh catalyst, ahead of the upcoming FOMC meeting scheduled on 26-27 Jul.
• Ringgit govvies pared earlier gains alongside weaker Ringgit against USD during mid-week, despite the softer-than-expected CPI number which recorded at +1.6% YoY in Jun, against consensus +1.8% YoY. Aside, WI for the 5-year GII was last quoted at 3.39/37%.
• Thai bond market reopened on weaker tone, with yields climbed by up to 10bps across the curve. Daily volume was heavier at Bt18.9 billion, compared to Bt13.3 billion registered last Friday. Focus was on LB366A auction. Demand was poor with bid-cover ratio of 1.02 times for a lower issue size of Bt9.23 billion, in contrast to Bt10 billion indicated earlier. Average yield stopped at 2.4842%, within a spread of 2.4480-2.5050%.
• Indonesian government bond market opened marginally stronger on Wednesday on foreign buying interests particularly in benchmark series. However, in the afternoon we have seen profit taking actions from various local names. This action pushed market back down and erased all the morning gains. We remain our positive view on IDR bond market and believe BI will conduct monetary easing. Market volume eased to IDR11.4 trillion on Wednesday and most traded bonds were those maturing in over 10 years (66%) and between 1 and 5 years (22%).