US Treasury yields edged lower, driven by weak housing data. Housing starts recorded at 1.09 million in May, below consensus estimate 1.22 million. However, gains may be pared ahead of upcoming offerings on the short dated papers this week, which include 91-day bill ($39 billion), 182-day bill ($33 billion) and 364-

Market Roundup

• US Treasury yields edged lower, driven by weak housing data. Housing starts recorded at 1.09 million in May, below consensus estimate 1.22 million. However, gains may be pared ahead of upcoming offerings on the short dated papers this week, which include 91-day bill ($39 billion), 182-day bill ($33 billion) and 364-day bill ($20 billion), alongside 30-year TIPS ($5 billion).
• Malaysia: Ringgit government bonds posted losses, pressured by weaker Ringgit, as USD/MYR hovered at 4.2760 late Friday, reacting to the anticipation of another Fed hike later this year. In our opinion, trading interest is likely to remain muted ahead of the Hari Raya holidays, while activities should be driven by portfolio rebalancing before end of the first half of the year. This week, highlight will be on inflation data scheduled for release 21 Jun. Consensus of forecasts is for inflation to moderate to +4.1% in May, from +4.4% a month prior.
• Thailand: Bond curve was held relatively steady on Friday after the rally in the intermediates and long-end from ongoing demand from foreign and local investor throughout the week.  Short-term govvies felt selling pressure from foreign investor at Bt2.07 billion after the Fed raised interest rate by 25bps on Jun 14 and the dots suggested one more hike to come in this year. Today’s highlight is the announcement of destination bonds for the switching program.
• Indonesia: IDR bonds moved in sideways post BI meeting, and trading volume was relatively thin. Most trading activities were seen on non-benchmark series around 10- and 15-year buckets, while benchmark papers were traded in tight range the entire day.