US Treasuries. UST posted losses amid growing optimism with tax bill advance, coupled with firm 3Q2017 GDP report (+3.3% vs consensus +3.2% qoq). On the other hand, Yellen reiterated gradual tightening in monetary stance in her Congressional testimony on Wed. Meanwhile, San Francisco Fed president John Williams sees another four hikes from now until end 2018, while targeting Fed funds rate at around 2.5% over next couple of years.
Malaysia. Flows were led by short dated papers as MYR continued to strengthen. MYR bond market appeared to be consolidating at this juncture, while foreign demand remained concentrated on the short term bonds. Meanwhile, the 5y GII was traded relatively flat at 3.87%. Expect flows to remain thin heading into the long weekend.
Thailand. Bond curve held flat as mid- to long-end papers fell 2-5bps. Front-end central bank bond (CB) aging less than 1y received firm demand from offshore investors as USD/THB was testing new low of 32.50.
Indonesia. IndoGB traded up in price on Wednesday on all tenors from 3y and above, as MoF revealed that it has cancelled the last two bond auctions (1 conventional & 1 sharia) in Dec due to the government fulfilling its issuance target. Hence bonds supply won't be added until end of year. Buying waves came in at market open and after the break, while some profit takers emerged near the break and closing hours, overall yield curve closed down by 4-6bps on average.
Asian Dollar Credits. Spreads were traded mildly tighter in secondary space, as sentiment lifted a tad with US tax bill advanced to full chamber vote later this week. Among the primary pipelines, Tencent and Alibaba were reportedly looking for USD issuances.
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CIMB Treasury & Markets Research-Fixed Income
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