US Treasuries closed little changed on Wednesday, with focus on the president-elect Trump’s speech during the news conference. However, market saw little reactions, awaiting more clues from the Trump’s policy. Major insight mostly dealt with

Market Roundup

• US Treasuries closed little changed on Wednesday, with focus on the president-elect Trump’s speech during the news conference. However, market saw little reactions, awaiting more clues from the Trump’s policy. Major insight mostly dealt with Trump’s denying Russia had damaging information on him, and attacks on the auto industry (concerning jobs moving to Mexico) and  the drugs industry (regarding price of medicine).
• Ringgit govvies posted losses ahead of the 15-year MGS tender. Meantime, the 15-year MGS saw improved demand after the yield curve steepened. In our opinion, the auction should be supported, as we heard players were not too worried despite the larger-than-expected issue size of RM4.0 billion. WI was quoted higher at 4.79/78%, compared to 4.77/74% a day prior.
• Thai sovereign bonds closed with little changes on Wednesday, despite IRS rates shifted higher by 2-5bps across the curve. Sentiment turned guarded, awaiting Trump's news conference slated. Daily volume was marginally higher at Bt12.0 billion, in contrast to Bt11.2 billion registered on Tuesday.
• IDR government bonds tenured 10-14 years were the market darlings on Wednesday as trades on those tenors dominated the market. The same went to short dated SPN bills with maturity up to Aug 2017 that attracted offshore buyers. Nearing end of the day, some profit taking pressure was seen to cause the curve to close 1-2 bps higher than on Tuesday.