FW: CIMB Fixed Income Daily - 21 Nov 2017 - MYR bond market muted

 

 

US Treasuries. UST yields ticked higher amid ease in risk aversion alongside equity markets recovery. Focus this week will be on FOMC minutes scheduled to be released on 22 Nov, but the impact is likely to be minimal with Fed Funds futures trading implied 92.3% probability of rate hike in Dec. Aside, Yellen said that she will step down from the central bank's board of governors, together with her term as chair ends next Feb.

Malaysia. Malaysian sovereign bond market continued to see muted trading interest, despite the upbeat 3Q2017 GDP report late last week. Up next is Oct CPI number slated for 22 Nov, where consensus sees it to moderate to 4.1% from Sep 4.3% but we expect little reaction from the market. In the primary space, the central bank announced reopening auction for 15y MGS with an issue size of RM2.0b for public tender and another RM1.0b private placement. WI was heard quoted at 4.70/63%.

Indonesia. IDR bonds posted gains on Monday on the back of foreign interest. Trading flows were concentrated on benchmarked series.  Government will hold sharia bond auction today with target amount IDR5t. We believe demand for auction remains solid as IDR liquidity still ample.

Asian Dollar Credits. USD credits stood on firmer footing, tracking the pullback in UST yields amid cautious sentiment. With Dec hike priced in, we see UST yields to be supported, hence capping USD credits in the near term. Primary offerings continued to emerge this week, including China Cinda AMC, Macquarie, China Export-Import Bank, Reliance Industries and etc.

Best Regards,
CIMB Treasury & Markets Research-Fixed Income
Tel: +603 2261 8557 | Fax: +603 2261 8705
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