US Treasury marginally weakened. Interest was supported by the declines in crude oil and

Market Roundup

• US Treasury marginally weakened. Interest was supported by the declines in crude oil and stock prices, whilst selling pressure was driven by the decent Aug ADP report (177k against consensus 175k) and better-than-expected Jul pending home sales (+1.3% against consensus +0.7% MoM).
• Elsewhere, the Fed members shared mixed remarks on raising rates. Boston Fed President Eric Rosengren showed his concerns on rising asset prices, amid lower unemployment and record low interest rate environment. On the flipside, the Chicago Fed President Charles Evans reckoned that the low interest rates remain valid, due to the slower growth in US economy.
• Malaysian government bonds were dealt weaker on Tuesday ahead of the mid-week (Wednesday) public holiday. Yields were seen up around 4bps especially along the bellies and far end of the curve. The market was still guided by recent hawkish sounding Fed, whilst players were also cautious ahead of Friday’s NFP release.
• After a very quiet opening session on Wednesday, Indonesia’s government bond market showed signs of life, trading more actively especially on the 10-year benchmark bond FR56. Offshore names were seen behind the net buying action, with little to no resistance from sellers, sending yield curve down on average by 5bps. Market volume fell to IDR9.8 trillion and dominated by bonds maturing in over 10 years (73%).