US Treasury yields rose across the curve on Friday, amid anticipation of incoming primary

Market Roundup

• US Treasury yields rose across the curve on Friday, amid anticipation of incoming primary supplies totalling $88 billion this week. On the other hand, players turned cautious and awaited for the Fed chief Janet Yellen’s speech in Jackson Hole conference scheduled on 26 Aug. The US Treasury Department will conduct auctions for 2T ($26 billion), 5T ($34 billion) and 7T ($28 billion).
• Ringgit govvies moved in sideways ahead of weekend. In the short to medium term period, we think that Ringgit bonds will remain supported amid the low yielding environment and speculations of further easing by Bank Negara Malaysia later this year. Near term market drivers will include the Jul inflation data slated for release on 24 Aug, with economists projecting a rise of +1.1% yoy from +1.6% in Jun. Apart from that, players also await the announcement for 10-year MGS reopening auction.
• Thai govvies closed relatively flat, whilst activities continued to be led by LB176A on Friday. We think that the long dated bonds may continue to see pressure with primary supplies on tap - LB466A (24 Aug) and LB366A (31 Aug).
• Indonesian government bonds were traded in range in the first session on Friday, whilst market was seen with bidding interest amid positive sentiment. However after the break, bonds were traded lower in price as some profit taking action was seen ahead of the afternoon's BI meeting result announcement. Market volume inched up to IDR15.3 trillion and was dominated by bonds maturing in over 10 years (67%) and bonds maturing between 1 and 5 years (24%).