FW: CIMB Fixed Income Weekly - 15 Jan 2018 - UST weighed by higher inflationary pressure & China's comments

 

 

• US Treasuries
  o        UST yields ticked up by higher inflationary pressure expectation, alongside Chinese officials reportedly considering reducing UST purchases. Meanwhile, despite the mixed signals from several Fed members, the Fed stance is likely to continue its gradual normalization going forward. Apart from rising oil prices, upcoming focus this week will be on the US geopolitical risk, as the lawmakers need to pass a spending bill by 19 Jan to avoid government shut down.
• Malaysia
  o        Malaysian sovereign bonds appeared to be directionless over the week. Gains driven by stronger MYR was capped by the potential rate hike anticipation later this month. With MYR maintaining its outperformance and strengthening bias, we expect little upside for MYR bonds this week.
• Indonesia
  o        IDR bonds traded mixed with selective buying interest on bellies of the curve. Overall, gains were led by positive catalysts such as the sovereign rating upgrade, IDR appreciation and low inflation outlook. We expect the 10y benchmark to hover at 6.00% this week.
• Thailand
  o        There was good demand in primary space for Thai government bonds, buoyed by ample liquidity from the local players, and increased appetite from foreign players due to the low inflation. Elsewhere, we expect positive sentiment to sustain and see good demand for LB366A auction this week.

Best Regards,
CIMB Treasury & Markets Research-Fixed Income
Tel: +603 2261 8557
www.cimb.com
Find us on Bloomberg via 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 ******************************************************************************************************************************************************