US Treasuries weakened on Wednesday amid a lack of fresh pertinent economic data whilst there was decent demand at the 5-year securities auction (though there was a slight tail near the end). In any case, players continued to

Market Roundup

• US Treasuries weakened on Wednesday amid a lack of fresh pertinent economic data whilst there was decent demand at the 5-year securities auction (though there was a slight tail near the end). In any case, players continued to be wary ahead of the Nov FOMC meeting whilst awaiting more signals from BoJ and ECB with regards to their QE asset purchases programs. There are expectations BoJ will ditch its targeted 80 trillion yen program whilst ECB has yet to signal whether it will extend its program next year.
• Malaysian government bonds were dealt firm on Wednesday with suspected foreign investor support. MYR was pretty firm around 4.1645 late in the day versus levels just above 4.1800 a day prior. Aside, details for the upcoming 20-year MGS May’35 was announced with tender size RM2.0 billion. With the new 20-year MGS supply, brings total MGS+GII offerings year-to-date to RM79.5 billion.  WI was 4.27/22%.
• Thai government bonds ended mixed with yields rangebound +/-2-3bps by Wednesday’s close. A weak THB, release of stronger than anticipated custom trade numbers and sale of a large Bt30.0 billion of 5.93-year LB226A affected sentiment. The LB226A auction managed to score bids amounting to Bt35.3 billion and yielding an average 1.9209% yield. In the secondary segment, LB226A moved to 1.93% by late Wednesday, up 3bps from a day prior. USD/THB was about 34.989 late Wednesday but after seeing levels as low as 34.872 intraday.
• IDR government bonds were traded down Wednesday as players reacted to the S&P announcement it is unlikely to upgrade Indonesia credit rating to investment grade. Volume looked thin, and local buyers bid at current level especially on 5- and 10-year tenors until market closed.