US Treasuries weakened ahead of FOMC minutes release, but losses were eventually reversed, amid mixed views from the Fed members on the rate hike decision in Sep meeting. On the

Market Roundup

• US Treasuries weakened ahead of FOMC minutes release, but losses were eventually reversed, amid mixed views from the Fed members on the rate hike decision in Sep meeting. On the other hand, New York Fed President William Dudley sees gentle rate hikes along the moderate economic growth which could last for next five to ten years.
• Ringgit govvies were dealt weaker, along with higher USD/MYR (near 4.2000 late Wednesday) amid risk-off sentiment, as players turned cautious awaiting the release of FOMC minutes. WI for the 10-year GII was last traded at 3.79%.
• Thai government bond remained under selling pressure, amid escalated risk-off sentiment with the stock market closed 2.5% lower at 1406. Meantime, trading volume increased to Bt26.3 billion, from Bt17.4 billion recorded a day prior. The LB316A auction saw poor demand (bid-to-cover of 0.8 times) with an issue size of Bt3.45 billion, way below the previous indicative size of Bt15 billion. Average yield was generated at 2.614%, within a spread of 2.600-2.625%.
• Indonesian government bond market was traded firmer on the back of market regain confidence after government cut the target issuance on previous day auction.  We have seen local names on buying side in 10- to 15-year tenors and meanwhile short dated bond was on better selling following NDF market.  We believe market is supported from here and real money will try to bottom fish. Market volume was steady amounting IDR10.5 trillion and was dominated by bonds maturing in over 10 years (39%).