FW: CIMB Fixed Income Daily - 25 Jan 2018 - Highlight on ECB meeting

 

 

UST yields climbed after yesterday's pullback. Yields rose across the curve along with an uptick in German bund yields amid anticipation of potential taper talk in ECB meeting scheduled today. On the other hand, Brent crude oil edged higher and surpassed $70/bbl, also pressuring UST yields higher.

MYR govvies saw slight better buying interest, suspected to be driven by bargain hunting ahead of MPC meeting slated for Thursday. The Dec CPI registered at +3.5% yoy, in line with market expectation and was marginally higher than +3.4% a month ago. Bank Negara announced the reopening auction for 15y MGS, which came at a size of RM2.5b for public tender (with another RM1b private placement) WI was last heard at 4.46/43% late Wednesday.

Good auction demand spurred buying interest in Thai bonds. Much of LB movement is centered at LB26DA auction that received good demand and moved mid- to long-end yields lower about 1bp. The auction range was tight at 2.325%-2.335% and high btc at 3.87x with demand from local and offshore participants.  

Indonesia's govvies under pressure. IndoGB traded lower on Wednesday morning on selling by foreign onshore banks. We saw some end clients taking opportunity to buy on dip. Yield went up by 5 to 8bps but quickly bounced back near closing time as market was still well supported. Both locals and foreign accounts turned bidders after lunch. Market volume doubled to about IDR 27.3 tn and trade concentration stayed at the long end of the curve.

Softer demand in Asian Dollar Credits. Sentiment was not aided by firmer UST, as newly priced papers were seen traded near or wider from reoffer levels. As for new deal, Beijing Capital Group's 3y bond was guided at T+190bps. Apart from that, Daegu Bank was reportedly meeting investors for its USD issuance beginning 29 Jan.

Best Regards,

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