Ringgit govvies pared gains, while IRS curve inched higher, amid cautious sentiment ahead of FOMC meeting next week. Meanwhile, the central bank announced auction for the new 5-year MGS, which came at a size of RM4 billion, with tend

Market Roundup

• US Treasury yields climbed across the curve as market continued pricing in the March rate hike by Fed. Notably, the 2T yield peaked at 1.33%, after surpassing 1.30% earlier this month. Upcoming data releases on tap include ADP employment and wholesale inventories slated for Wednesday.
• Ringgit govvies pared gains, while IRS curve inched higher, amid cautious sentiment ahead of FOMC meeting next week. Meanwhile, the central bank announced auction for the new 5-year MGS, which came at a size of RM4 billion, with tender closing on 9 Mar. WI was last heard at 3.88/80% on Tuesday.
• Thai sovereign yields edged slightly higher about 1bp along the curve as foreign selling interest concentrated at the belly ahead of FOMC rate decision and US employment report on Friday. Meanwhile, local player stayed biddish for opportunistic rising yield. Trading activities turned quiet in afternoon session as there was no key macro data and event.
• On opening session, Indonesian government bond market traded in tight range, however the tone turned positive in second session after news that Japan Credit Rating (JCR) Agency upgrade outlook on Indonesia's rating from stable to positive. Market players hunted for bonds anywhere from 10- to 20-year tenors afterwards, sending yields on belly to long end down by 3-6 bps. Market volume decreased to IDR10.7 trillion and dominated by bonds maturing in over 10 years (43%).