US Treasuries. UST posted gains Friday, reacting to renewed concerns of Trump-Russia link after former NSC advisor Flynn pleaded guilty lying to the FBI, despite the positive progress in the tax bill vote. The Senate passed the tax reform bill with a narrow margin at 51-49.
Malaysia. MYR bond market was closed Friday. Trading flows were led by short-dated papers alongside portfolio rebalancing activities which involved selective MGS benchmark papers ahead of the long weekend. Despite the positive movement, we reckon the market could see correction due to caution ahead of the Dec FOMC and profit taking pressure ahead of the year end.
Thailand. Bond curve bear steepened on Fri and yields rose about 1-2bp (5-20y) papers from mild profit taking activity as headline CPI accelerated to 0.99% in Nov. The auction of 91-day T-Bill saw long tail (1.235-1.32% range). Short-ends were exposed to sell-off risk after more central banks joined the chorus of rate hikes. The BOK raised interest rates to 1.50% for the first time since Jun 2010 and the Fed looks to increase at the meeting on Dec 12-13.
Indonesia. Bond market was closed Friday. To recap, IndoGBs opened sideways and were mostly in range Thursday. Some net buying flows in 10y benchmarks were seen in the morning session. However these were not sufficient to trigger a rally. Near closing hour, players took profit ahead of the long weekend. Volume halved to IDR10.2t and was evenly traded between, short, medium and long tenors.
Asian Dollar Credits. Trading in the secondary market was biased towards net selling amid persistent profit-taking pressures ahead of the year end. Alibaba's multi-tranches issues which included 5, 10, 30 and 40y bonds saw firm demand and were traded tighter in the secondary space. As for primary offerings, Pearl Holding III's 5NC2 bond was guided at the lower range of 9%, while Chengdu Communications and Indonesia were reportedly looking for new issuances.
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.