Market Roundup
- US Treasuries strengthened on the back of geopolitical fears after North Korea's missile launches this week. However, gains were eventually pared by profit taking activities as tensions eased amid a lack of further developments and restrained response by Trump. The 10T yield dipped below 2.10% and hit 2.08% for the first time since Nov 2016, but was able to edge higher to 2.13% by late Tuesday.
- Malaysia: MYR sovereign papers were dealt firm alongside UST gains. Flows were heavy and led by 7- and 10-year GII, as well as 10-year MGS. We reckon activities were aided by month-end flows. The 7-year GII reopening auction saw firm demand, indicated by bid-cover of 2.104 times for the RM3.5 billion public tender (another RM0.5 billion private placement). Average yield was 3.975%, in line with the WI levels around 3.96-3.99% in the previous two trading days. Post auction it was traded within tight range of 3.96-3.98%.
- Thailand: Thai govvies ended with gains Tuesday, falling 2-3bps in the intermediates and long-ends. Market still looks to buy 49-year LB666A with expected good demand from long-term local players (current yield at 3.57%). Foreign investors returned to the front-ends (+Bt1.67 billion) after more than a week of sell-off while they booked profit of longer term bonds about Bt1.75 billion, causing overall net-sell position of Bt78 million. Funds rotated to equity with foreign net-buy position at Bt4.82 billion as local political concern was alleviated and SET index passed 1,600pt to close at 1,614.14pt.
- Indonesia: IndoGBs opened with wide bid-offer spreads as global markets experienced a risk-off mode due to North Korea's missiles. Market rebounded though, as bids remained strong, and market even chased benchmark bonds especially on belly to long end.
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