Short dated US Treasury yields rose, reacting to the release of higher-than-expected inflation data on Friday. However, long dated US Treasuries inched lower, supported by buying-on-dips

Market Roundup

• Short dated US Treasury yields rose, reacting to the release of higher-than-expected inflation data on Friday. However, long dated US Treasuries inched lower, supported by buying-on-dips interest. The CPI grew by 0.2% MoM for the month of Aug, above 0.1% MoM forecasted by economists earlier.
• Malaysian sovereign bonds closed weaker ahead of long weekend, with players trimming positions heading towards FOMC meeting. Also, pressure remained intact with USD/MYR hovered within higher range of 4.1200-4.1400 alongside lower oil prices.
• Thai government bonds closed mixed on Friday, amid improved sentiment driven by gains in overnight UST. Daily volume was marginally lower at Bt15.6 billion, compared to Bt16.9 billion. Other than the FOMC meeting, focus this week will be on the LB226A auction (21 Sep), will is indicated with an issue size of Bt20 billion.
• Indonesian government bond market was traded firmer on Friday on better buying mode in line with strengthening Rupiah. Tone was positive on the back of weaker US retail sales numbers, with buyers varied from local end investors, banks, to offshore names. Risk events this week include BOJ, Fed and BI meetings, which are expected to trigger actions in the market. Market volume decreased to IDR12.8 trillion and was dominated by bonds maturing in over 10 years (38%) and bonds maturing between 1 and 5 years (33%).