US Treasuries weakened a tad amid profit taking activities awaiting several risk events – ECB meeting, UK election and Comey’s testimony. However, the net selling pressure was mild, partially driven by dip in oil prices on the back of surprise increase in US stockpiles for the first time in nine weeks. Brent crude oil settled lower at $48.06

Market Roundup

• US Treasuries weakened a tad amid profit taking activities awaiting several risk events – ECB meeting, UK election and Comey’s testimony. However, the net selling pressure was mild, partially driven by dip in oil prices on the back of surprise increase in US stockpiles for the first time in nine weeks. Brent crude oil settled lower at $48.06/bbl on Wednesday, from $50.12/bbl a day prior.
• Malaysia: Ringgit govvies hovered near prior levels, with trading activities slanted towards the 20-year MGS and 7-year GII. Riding on the stronger MYR, foreigners remained net buyers in MYR govvies for a second consecutive month in May, as the latest data showed foreign holdings edged higher from 26.5% in Apr to 27.5%, equivalent to an increase of RM8.98 billion. Foreign reserves stood at $98.0 billion as at 31 May, higher than $97.3 billion registered two weeks prior.
• Thailand: The auction of LB466A drew solid demand at 1.97 times bid-cover and average yield 3.429% or 4bps lower than previous day's close. Along other tenors, bonds gained in a tight range of 1-2bps as external uncertainties buoyed demand for safer fixed income securities. Foreign investors still favored long-term bonds with Bt4.245 billion net purchase position while they reduced position in short-term bonds at Bt4.50 billion as downside in front-end yields looks limited after LB191A to LB196A seemed to meet the bottom below 1.50%.
• Indonesia: IndoGBs were traded in a tight range for most of the day Wednesday, as volume was thin. Looks like markets heading sideways ahead of ECB meeting, UK election and ex-FBI chief testimony on Trump. Small net buying action was seen on the 10-year space earlier in the day. However, activity was unable to trigger more movements. Volume increased a tad to IDR13.0 trillion and centered on bonds maturing in over 10 years (40%).