Cautious mood ahead of NFP release continued to pressure US Treasuries Thursday, sending the yields higher by 2-4bps across the curve. The 10T rose to 1.74%, near the one-month high

Market Roundup

• Cautious mood ahead of NFP release continued to pressure US Treasuries Thursday, sending the yields higher by 2-4bps across the curve. The 10T rose to 1.74%, near the one-month high of 1.75%. The Sep NFP is expected to show total job gains of 172k, higher than 151k garnered a month prior.
• Ringgit govvies pared previous day losses on bargain-hunting interest, supported by firmer Ringgit in the early session and higher crude oil prices. The RM3.5 billion new 3-year GII tender saw decent demand with a bid-to-cover ratio of 2.07 times. Average yield was generated at 3.226%, within a spread of 3.200-3.238%, but slightly lower than WI level of 3.23% a day prior the tender close.
• Thai sovereign bonds remained under pressure amid weaker sentiment ahead of US NFP release on Friday. Daily trading volume was heavier at Bt18.1 billion, compared to Bt9.2 billion a day prior, whilst focus was mainly on short dated LB196A and LB176A. Expect Thai bonds to move in sideways, with slight downside bias, as players usually prefer to stay light heading into NFP release.
• Indonesian government bond yields rose by 5bps on average on the back of offshore net selling pressure, betting on the Fed rate hike. Market seemed choppy and offerish. US NFP and jobs data will be very important and should serve as catalysts for next week. Volume fell to IDR6.5 trillion and dominated by bonds maturing in over 10 years (43%).