Thailand: The auction of LB366A drew firm demand as expected with 3.47 times bid to cover and average yield at 3.0645%. Market absorbed total amount of Bt6.6 billion including additional 10% over allotment and demand for this bond series strengthened further after the auction as it was taken by both of local and offshore players, causing lower close at 3.046% on Wednesday. Foreign investors retur

Market Roundup

• US Treasuries closed firmer across the curve, paring losses a day prior, buoyed by late buying interest on Wednesday. The Fed held rates unchanged in Jul FOMC meeting as widely expected. Overall, the Fed pointed that “near-term risks to the economic outlook appear roughly balanced”, but the policymakers are eyeing on inflation developments closely. Moreover, the central bank signaled that the balance sheet adjustment to be “relatively soon, provided that the economy evolves broadly as anticipated”.
• Malaysia: Ringgit sovereign papers closed mixed on Wednesday, amid net selling pressure driven by rise in UST yields along with higher oil prices. Flows were led by shorter dated papers including MGS Sep’18, Mar’22 and Sep’24. Meanwhile, WI for the 10-year MGS reopening was last quoted at 3.99/98%, in contrast to 3.97% traded a day prior.
• Thailand: The auction of LB366A drew firm demand as expected with 3.47 times bid to cover and average yield at 3.0645%. Market absorbed total amount of Bt6.6 billion including additional 10% over allotment and demand for this bond series strengthened further after the auction as it was taken by both of local and offshore players, causing lower close at 3.046% on Wednesday. Foreign investors returned to Thai bond at Bt1.78 billion for the long-ends and at Bt1.00 billion for the short-ends. Meanwhile, belly curve within 5-9 year tenor shifted 2-3bps higher, in line with UST yield.
• Indonesia: IndoGB traded down in line with US Treasury movement. 10-year UST yield went up to 2.33% after spending 1 week on below 2.30% level, with FOMC meeting underway. Market trimmed positions in IndoGB although volume might be not much, mostly on 10-year benchmark bond. Market volume increased to IDR17.6 trillion and trades were dominated by bonds maturing in over 10 years (42%) and bonds maturing in between 5 and 10 years (30%).