US Treasuries. UST yields continued to climb as investors await Fed's decision on rates and its balance sheet normalization. The improved risk appetite also aided to push yields a tad higher across the curve. In economic data releases, housing starts was +1180k (consensus 1174k) in Aug, while import price rose by 0.6% mom during the same period, versus consensus +0.4% mom.
Malaysia. MYR bonds continued to be weighed by cautious trading ahead of FOMC and CPI release, pushing the curve in bear-flattening mode. Trading remained slanted towards short dated papers, led by GII Nov'17 and MGS Mar'18. We expect better buying interest post FOMC and CPI release, particularly on the bellies of the curve.
Thailand. Thai govvies rose within 1-2bps across all tenors amid improved risk appetite. Yet, higher yields on the belly and long-end as much as 10bps since Sep 8, attracted some demand from domestic followed by NR players. Net buying was concentrated on 3-year BoT203A before tomorrow's auction of BOT209A. Foreign investors bought long-term bonds at Bt2.94 billion and sold short-ends for a second consecutive day at Bt5.19 billion.
Indonesia. IDR government bond market was generally quiet but was on better buying mode, particularly in 10- to 20-year tenors. Demand for auction remained solid, total incoming bid was IDR52.3 trillion. Government upsized issuance to IDR17 trillion from initial IDR15 trillion and yields were in line with currently market. Market was biddish post auction especially on the auctioned series, FR61, FR59, FR75 and FR76. We think market will rise today amid positive auction sentiment.
Asian USD credits. Secondary trading remained stable with focus on sustained primary offerings ahead of FOMC. As for primary deals, KWG Property priced 5NC3 bond at 5.2% with good demand reflected by more than $850 million orders for the $250 million issue. Meantime, Beijing Infrastructure guided its 3-year bond at T+125bps.
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