US Treasuries moved in ranges but ended little changes, reacting to the large bond issuance from Saudi Arabia ($17.5 billion), whilst players digesting the Fed Beige Book during mid-week. Malaysian government bonds moved in sideways

Market Roundup

• US Treasuries moved in ranges but ended little changes, reacting to the large bond issuance from Saudi Arabia ($17.5 billion), whilst players digesting the Fed Beige Book during mid-week.
• Malaysian government bonds moved in sideways, amid mixed trading interest during mid-week. Despite the firmer Ringgit aided in supporting Ringgit bonds, but upsides were capped as players reluctant to add positions heading towards the upcoming Malaysia’s Budget 2017 announcement this Friday.
• Thai government bonds extended gains on the back of heavier flows during mid-week. Despite the improved sentiment in secondary space, the Bt14 billion LB666A auction saw soft demand with bid-to-cover ratio of 1.03 times. Average yield stopped at 3.2613 within a wide spread of 3.2170-3.3280%.
• IDR government bond market dropped again, following global bond sell off that UST now traded 1.75-1.80%. IDR sovereign yield curve has bear steepened in which offshore names were seen selling long dated bonds.  Local investors were seen supporting the bond market particularly in certain series FR59, FR73, FR71 and FR68.  Interbank were trying to consolidate the position and believe they were net buy. We think market will rebound if BI cut the rate. Market volume was steady amounting IDR8.2 trillion and was dominated by bonds maturing in over 10 year (41%).