US Treasuries. US Treasury yield curve flattened, supported by flows for safe-haven assets as stock markets retreated ahead of weekend. Meantime, 2T yield remained well anchored at fresh high as players continued pricing in Dec rate hike. Treasury Secretary Steven Mnuchin said that only the high earning group (>$1 million) will require to pay more taxes under GOP tax bill. The bill advanced with the Senate Finance Committee's approval, while awaiting full Senate's decision after Thanksgiving holiday.
Malaysia. Malaysia's 3Q2017 GDP data was robust with 6.2% yoy expansion, compared to consensus +5.7% yoy. The resilient growth was underpinned by private sector spending and continued strength in exports, as well as supportive public sector spending. The positive data release attracted demand for short dated papers in conjunction with lower USD/MYR around 4.16 late Friday. On the other hand, MGS curve shifted a tad higher amid thin trading interest.
Thailand. Bonds were traded in sideways and tight ranges on Friday while demand grew at front-end CB from foreign players after USD/THB dropped below 33.00 and reached 32.83, the lowest level in more than 2 years. Expected good Thai GDP data on Monday may further add gain the baht, and thus, Thai bonds may receive demand accordingly.
Indonesia. Bonds advanced following IDR currency movement in early hours. As expected, BI kept the benchmarked rate unchanged. Market was seen with positive sentiment post BI's decision. Yield curve ended up bull steepening on the back of foreign buying flows. Government will hold sharia bond auction this week with indicative target of IDR5t, while there were speculations on possibility of the next conventional bond auction to be cancelled, which will cause market rally if it happens.
Asian Dollar Credits. Asian dollar credits were better supported on Friday. Gains were seen on Indian bonds after Moody's upgraded India's sovereign rating from Baa3 to Baa2, citing continued progress on economic and institutional reforms will enhance the country's growth potential over time. Elsewhere, Shanghai Commercial Bank is looking to issue Tier 2 bond.
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