US Treasuries. Treasuries rallied with release of the Nov FOMC minutes, which showed that some policymakers were against raising interest rates in the near term period seeing the still weak inflation. The University of Michigan consumer sentiment fell from its 13y high to 98.5 in Nov from 100.7 in Oct.
Malaysia. MGS curve shifted lower on the back of strengthening MYR. The bond yields dipped below levels before Nov MPC meeting, suggesting aggressive buying flows were mainly driven by foreign investors. On the other hand, the successful 15y MGS reopening continued to see trading interest post auction, trading at a wide range of 4.46-4.56% before settling at 4.47%. In our opinion, the positive momentum may spur into laggard GII space in the short term period, if USD/MYR continues its downtrend. USDMYR was at 4.0960 this morning against 4.1103 Wednesday - expect mixed sentiment today after yesterday's rally.
Thailand. Auction of LB366A received weak demand at 0.83 btc and long-tail range of 2.878%-2.92%. Papers along the mid- and long-end rose about 2-3bps accordingly and this signaled lower appetite for bonds as we step closer to end-2017. In contrast to long-ends, lower USD/THB spot movement sparked demand at front-ends from foreign demand. Therefore, 2x5 curve looks steep and the spread widened further to 48bps after hitting our target of 44bps last week.
Indonesia. Offshore demand supported IDR bonds Wednesday despite some bearish net selling activity amongst local players. Yields fell 2-5bps along shorter to medium tenors.
Asian Dollar Credits. Focus was on primary offerings with secondary trading moving sideways during mid-week. In the primary space, Qingdao City's 3y and 5y bonds were guided at 215bps and 240bps over UST, while Orient Huizhi's 5y paper was indicated at T+190bps. Also, Binhai Investment was heard pricing its 3y bond near 4.70% range.
Best Regards,
CIMB Treasury & Markets Research-Fixed Income
Tel: +603 2261 8557 | Fax: +603 2261 8705
www.cimb.com
Find us on Bloomberg at CIMR <Go>
Think Before You Print
******************************************************************************************************************************************************
Privileged/confidential information may be contained in this message. If this message is received by anyone other than the intended addressee, please return the message to the sender by replying to it and then delete the message from your computer. Unintended recipients are prohibited from taking action on the basis of information in this e-mail. No confidentiality or privilege is waived or lost by CIMB Group including its affiliates (CIMB Group) by any mistransmission of this e-mail. CIMB Group does not accept responsibility or liability for the accuracy or completeness of, or presence of any virus or disabling code in, this e-mail. CIMB Group reserves the right to monitor e-mail communications through its networks (in accordance with applicable laws). Opinions, conclusions, statements and other information in this message that do not relate to the official business of CIMB Group shall be understood as neither given nor endorsed by it.
CIMB Group Sdn Bhd (incorporated in Malaysia, (Company No: 706803-D)). Registered Office: 13th Floor, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral,, 50470 Kuala Lumpur, Malaysia.
Visit our website at www.cimb.com ******************************************************************************************************************************************************
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.