US Treasuries continued to be range trading, and yields ended higher on Thursday, on the back of positive economic data releases as well as rate hike remark by New York Fed president William Dudley. He expects that the Fed will raise rates before end of this yea

Market Roundup

• US Treasuries continued to be range trading, and yields ended higher on Thursday, on the back of positive economic data releases as well as rate hike remark by New York Fed president William Dudley. He expects that the Fed will raise rates before end of this year, whilst he thinks that “a hike of quarter of a point is not really that big of a deal”.
• Ringgit sovereign bonds hovered near prior levels, as players remained at the sidelines pending Malaysia’s Budget 2017 announcement. Trading activities concentrated on the front end of the curve, led by MGS Feb’17, Oct’17 and Sep’17. Sentiment remained cautious despite the recent mild pullback in USD/MYR.
• Thai govvies closed mixed on Thursday. Trading volume was heavier at Bt23.6 billion, compared to Bt39.7 billion a day prior, while flows were slanted towards shorter dated papers namely LB206A and LB21DA. Expect to see some consolidation in the near term amid a lack of fresh catalyst.
• IDR government bond market rebounded post BI MPC Meeting result came out, in which BI cut the 7-day RR rate 25 bps to 4.75%, the upper and lower corridor also cut by 25 bps to 5.5% and 4% respectively.  Market opened lower with sustained selling interests seen from offshore names. On the other hand, local names also were seen keep buying the 3-year and 10-year tenors, we suspect the buying interests was coming from banking book. Yield curve eventually went down post the result BI meeting came out and erased the morning's loss.