US Treasury yields inched up across the curve on Wednesday, alongside the upticks in crude oil prices but the yields remained under pressure after the recent downtrend. However, bond market appeared to be directionless during mid-week and consolidating ahead of ECB as well as BoJ meetings.

Market Roundup

• US Treasury yields inched up across the curve on Wednesday, alongside the upticks in crude oil prices but the yields remained under pressure after the recent downtrend. However, bond market appeared to be directionless during mid-week and consolidating ahead of ECB as well as BoJ meetings.
• Malaysia: MYR denominated government bonds closed on firmer footing, tracking gains in global bond markets driven, amongst others, by weaker-than-expected UK CPI data release. On top of that, MYR govvies were also supported by softer Malaysia’s Jun inflation number, which eased to +3.6% yoy from +3.9% yoy a month ago, and below consensus +3.9% yoy. Elsewhere, USD/MYR was flat and settled at 4.2865.
• Thailand: Thai bonds closed mixed with THB holding steady after a week-long rally. However, sentiment was guarded ahead of exports data due today. Custom exports are anticipated to rise a smaller 7.85% yoy in Jun against +13.20% in May.
• Indonesia: IndoGB yield curve fell on Wednesday, in line with lower yield on US Treasury to sub-2.30% (2.27%). Both onshore and offshore buyers were bidding quite aggressively on 15- to 20-year buckets, while offshore banks chased bonds and bills tenors up to 12 months. After a flurry of buying action, market felt steadier at current levels until close. Market was dominated by bonds maturing within a year (28%) and bonds maturing in over 10 years (44%).