FW: CIMB Fixed Income Daily - 24 Nov 2017 - MY and TH bonds moved in sideways amid a lack of fresh catalyst

 

 

US Treasuries. UST market was off on Thanksgiving holiday.

Malaysia. Flows remained concentrated on the short dated MGS papers, while market was seen with cautions ahead of CPI release this Friday, particularly after the rally earlier this week. Meantime, players await announcement of 5y GII reopening auction, which we expect an issue size of RM3b.

Thailand. Thai bond mostly traded in sideways and fluctuated in narrow range except 2y-3y segment which is actively traded after  the auction of Bt45bn  3y BOT209A received with higher range of 1.582%-1.60% as most local clients did not actively participated this bond sales. Therefore, yield of LB19DA and LB206A was under selling pressure after the auction and the yield ended higher by 1-2bps. While bond is not meant to be a darling for investor as they look to close out position at year-end, risk is likely to be limited by opportunistic  higher yield buyer.

Indonesia. IndoGB continued to trade firmer, with general biddish tone on Thursday, despite demand seemed concentrated more from 3y to belly. In particular, 5y and 10y benchmark bonds were the most popular bonds, as buying inflows were seen on those series. Bonds remained biddish until market closed, and yield curve closed -4/-1/+1/-0 bps. Market volume has returned to normal level, amounting IDR12.2t on Thursday and centered on medium and long term bonds.

Asian Dollar Credits. USD credits continued to see mixed trading interest amid a lack of fresh catalyst with US on Thanksgiving holiday. Elsewhere, Yankuang Group guided its 3y bond at 5.25% range, while upcoming potential pipelines include China General Nuclear Power and China Forestry Group.

Best Regards,

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