Malaysia: Malaysian sovereign bonds were dealt little changed, despite the firmer UST post FOMC. The RM3 billion 10-year MGS reopening auction (excluding RM1 billion private placement) saw soft demand. Post auction we noted it was traded within narrow range of 3.97-3.99%, near to average yield 3.978% gar

Market Roundup

• US Treasury yield curve ended higher and steeper on the back of positive economic data releases on Thursday. Durable goods orders expanded by 6.5% mom in Jun, above consensus +3.9% mom. Aside, wholesale inventories grew by 0.6% mom during the same period, against consensus +0.3% mom. Upcoming highlight will be on 2Q2017 GDP data scheduled on Friday, where economists projected +2.7% qoq.
• Malaysia: Malaysian sovereign bonds were dealt little changed, despite the firmer UST post FOMC. The RM3 billion 10-year MGS reopening auction (excluding RM1 billion private placement) saw soft demand. Post auction we noted it was traded within narrow range of 3.97-3.99%, near to average yield 3.978% garnered in auction. Expect trading flows to be driven by external factors, amid a lack of fresh catalyst in local market at this juncture. Upcoming key data on tap will be on trade numbers slated for 4 Aug.
• Thailand: Thai bond gained in the bull-flattening curve with yield falling about 1-2bps as market position in purchasing Thai bond after the result of FOMC meeting on Jul 25-26 was perceived dovish from mentioning below 2.00% inflation target. Trading activities appear light and outright trading activities dropped 31.99% to Bt79.76 billion as the market is stepping to holiday on Fri. Foreign appetite for Thai bond has been firm and they are net buyer of short-end and long-end at Bt5.12 billion and Bt368 million respectively. Short-end bond was attractive after the baht gained significantly as USD/THB dipped below 33.40 and this lower break signals the downtrend can be extended.  
• Indonesia: Indonesian government bond market traded up in price post-FOMC meeting last night, with the Fed dovish on inflation and seems committed to reduce balance sheet fairly soon. IndoGB rebounded as the sentiment turned positive, market was dominated with 10- and 20-year benchmark bonds transactions, with foreign onshore banks appeared as bidders in the market during London open. Total volume fell to IDR14.0 trillion and dominated by bonds maturing in between 5 and 10 years (32%) and bonds maturing in over 10 years (36%).