US Treasuries rallied with yields now near their lowest since last Nov after the print of much lower than expected non-farm payrolls number. NFP was +138k in May compared with earlier consensus expectation of +182k

Market Roundup

• US Treasuries rallied with yields now near their lowest since last Nov after the print of much lower than expected non-farm payrolls number. NFP was +138k in May compared with earlier consensus expectation of +182k and Apr’s +174k which was also revised lower from +211k prior estimate.
• Malaysia: Government saw mild strength with MYR firm near 3.2822 late Friday. Aside there was little in supply concerns as Bank Negara Malaysia announced details for the next MGS auction, being MGS Apr’37 (20-year MGS reopening) worth a relatively small RM2.0 billion - and what’s more there’s no private placement. WI trading of MGS Apr’37 was 4.58/53%.
• Thailand: Bond rally continued Fridy led by offshore buying in the mid- and long-end. Yield along bonds 5 years to 15 years maturity fell further by 2-4bps. Foreign investors bought long-term bonds at Bt2.77 billion while sold short-end bond at Bt4.28 billion. Meanwhile, activities from domestic players were relatively ahead of the US jobs report.
• Indonesia: Indonesia government bond market was a bit firmer on tactical buying from foreign banks. Volume and activity were still light, as sentiment generally remained mixed. This week, the government will hold a conventional bond auction with target amount IDR12 trillion.  We believe demand for the auction will be strong. On Friday, the statistic office announced the May CPI data, which was unexpectedly mild (+0.39%). The number is considered lower than its seasonal pattern. Market saw better buying post CPI data. Volume was steady amounting IDR9.3 trillion and concentrated on bonds maturing in between 1 and 5 years (35%) and also bonds maturing in over 10 years (27%).