US Treasuries weakened in the earlier session, but ended firmer in conjunction with lower stock prices, as DJIA fell by 195 points to 18143. The 10T yield peaked at 1.60%, and eventually

Market Roundup

• US Treasuries weakened in the earlier session, but ended firmer in conjunction with lower stock prices, as DJIA fell by 195 points to 18143. The 10T yield peaked at 1.60%, and eventually dipped to 1.56% late Thursday.
• We noted heavier trading in Ringgit bond market, driven by the positive sentiment on the back of surge in oil prices following the recent OPEC’s agreement to cut production, in conjunction with the 20-year GII reopening auction. The RM2 billion 20-year GII reopening auction saw good demand with a bid-to-cover ratio of 2.89 times. Average yield stopped at 4.226%, within a narrow spread of 4.210-4.238%, way lower than WI 4.29% quoted a day prior the tender.
• Thai govvies ended with little changes, amid light profit taking activities after the recent gains. Apart from that, daily volume shrank from Bt18.7 billion to Bt9.5 billion, whilst activities were slanted towards LB226A, LB25DA and LB196A. Focus will be on the trade data releases on Friday.
• Indonesian government bonds were dealt weaker as USD/IDR retraced to above 12950 and closed at 12970. Offshore banks were seen on the selling side, especially on the benchmark series, pushing the yield curve higher by 3-4bps on average. Tax amnesty revenue reached IDR89 trillion as of Thursday. Meanwhile, BI added liquidity in the market on Thursday and two days prior through monetary operations (7-day repo) to ensure the smooth tax payment.