FW: CIMB Fixed Income Daily - 14 Nov 2017 - Short dated MY bonds steady on suspected foreign interest

 

 

US Treasuries. Short dated 2T yield trended higher, as market continued pricing in a Dec Fed hike. Philadelphia Fed president Patrick Harker supported Fed to raise rate in Dec FOMC, despite showing his concerns over soft inflation. On the other hand, ECB vice president stated that the central bank's policy must remain easy as inflation remains well below its 2% objective.

Malaysia. Flows were slanted towards short dated papers, possibly driven by foreign demand amid firmer MYR. Along the longer tenors, the 10y MGS widened to 5bps to 4.13%. As for 10y GII, WI was last heard at 4.31%, in contrast to 4.26/25% quoted ahead of last weekend. Upcoming data on tap this week is 3Q2017 GDP slated for this Friday, where consensus sees growth of 5.5% yoy.

Thailand. Bond yield curve was little changed as BoT open market operation (OMO) flows amounting to Bt9.162b supported Thai government bonds maturing from 4-14y on Monday and contained risk of rising yields.

Indonesia. It was a quiet day for bond market on Monday. Trading activities were concentrated on short end tenors, particularly 1-2y. Trading interest remained muted as market continued to wait for the next conventional bond auction, which was indicated with a target of IDR15t. We see moderate demand for this auction given global sentiments. Market volume remained thin amounting IDR2.8t.

Asian Dollar Credits. Asian dollar credits persistently weakened, amid heavier profit taking pressure alongside upticks in UST following the Euro sovereign bonds selloff late last week. Also, there was a lack of positive catalysts with fading excitements over Trump's tax plan. Bloomberg news reported that Wuhan Dangdai's 3-year bond was guided at 7.25%. Aside, other names along primary pipelines include Yankuang Group and Philippines sovereign (2018).


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CIMB Treasury & Markets Research-Fixed Income
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