US Treasuries. UST curve bear flattened as front end particularly 2T yield continued to climb, coming ahead of the Dec rate hike, and amid the Trump-Russia investigations as well as after the Senate passed the tax bill last week. Aside, economic data were better than expectation. Factory orders declined marginally by 0.1% in Oct against the 0.4% contraction expected earlier, while durable goods orders dipped by 0.8% during the same period, versus consensus 1.1% decline.
Malaysia. MGS were traded firmer, driven by strength in MYR. USD/MYR slipped to near 4.0600 on Monday after the long weekend, despite the positive progress in US tax reform. Meanwhile, Bank Negara Malaysia announced details for reopening auction for 10y MGS - issue size of RM2b.0 for the public tender along with RM0.5b for private placement. WI was heard quoted at 3.93/85%.
Indonesia. IndoGB market was relatively quiet on Monday, trading sideways for most of the day before mild net selling action occurred just before the market closed. However supporting bids looked strong. November CPI YoY data was printed at 3.30% (lower than 3.41% expected and 3.58% previously. However, market showed little reaction. Market volume leaped to IDR16.2t and was evenly distributed across the curve.
Asian Dollar Credits. USD credit market saw mixed trading interest amid improved sentiment buoyed by US tax bill passage late last week. Elsewhere, Shimao Property was looking to tap on existing 2022 tranche at around 5% range. China Reform Holdings' 5y paper was guided at T+220bps. Other upcoming issuers included Shandong Sanxing Group and Guirenniao.
Best Regards,
CIMB Treasury & Markets Research-Fixed Income
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