US Treasuries opened weaker Friday before eventually moving firm after release of weaker than expected GDP data. The 2Q2017 GDP expanded 2.6% qoq, marginally lower than consensus +2.7% qoq. Supporting growth was 5.2% increase in non-residential fixed investments. Of particular worry would be the GDP price index falling sharply to 1.0% from 1.9% and core PCE plunging to 0.9% from 2.0%. Elsewhere, Minneapolis Fed President Neel Kashkari stated that the huge balance s

Market Roundup

• US Treasuries opened weaker Friday before eventually moving firm after release of weaker than expected GDP data. The 2Q2017 GDP expanded 2.6% qoq, marginally lower than consensus +2.7% qoq. Supporting growth was 5.2% increase in non-residential fixed investments. Of particular worry would be the GDP price index falling sharply to 1.0% from 1.9% and core PCE plunging to 0.9% from 2.0%. Elsewhere, Minneapolis Fed President Neel Kashkari stated that the huge balance sheet is not aiding in boosting the economy at this juncture, and supported gradually paring it down.
• Malaysia: MYR government bonds closed mixed Friday even as overnight Thursday UST yield curve steepened on the back of positive economic data releases. Meanwhile, trading activities were led by short dated papers.
• Indonesia: On Friday IndoGBs drifted lower in price while volume was thin. However some position trimming was seen in the afternoon especially on 15- and 20-year benchmark bonds. Players provided support bids, limiting the downside. The curve was 2-3bps higher at close. volume eased to IDR11.9 trillion and dominated by bonds maturing in 1-5 years (30%) and bonds maturing in over 10 years (31%).