Friday, December 8, 2017

FW: CIMB Fixed Income Daily - 08 Dec 2017 - Quiet market awaiting NFP

 

 

US Treasuries. UST yields ticked higher after the House of Representatives passed a short term funding bill until 22 Dec to avoid government shutdown. On the other hand, initial jobless claims registered at 236k for the period ending 2 Dec, lower than 240k forecasted earlier. We continue to see sideways movement pending NFP release.

Malaysia. Trading flows were muted in MYR bond market, while we noted mild selling activities, along with weaker MYR on Thursday. In economic data release, Malaysia's foreign reserves rose to $101.9b as at 30 Nov, from $101.5b registered two weeks prior, but provided little support to MYR bonds amid weak sentiment.

Thailand. Thai government bonds traded in quiet market and yields fluctuated in narrow range in choppy and directionless trading. Local clients had mixed interest amid looming key US event risks. Meantime, front-end liquidity was drying up again and 14-day CB received good demand at yesterday's auction with average yield of 1.1513%, 5bps lower than previous auction in Nov at 1.2075%. Therefore, we expect front-end THBIRS and 6m THBFIX will stay plummeting accordingly.

Indonesia. IDR bond market was relatively quiet on Thursday, while tone was slightly offerish in line with USD strengthening against IDR. Bond prices gradually went 10-20c lower by the end of the day amid a lack of buying interest. However at current level support bids were still strong. Yield curve went up by 1-2bps at close. Market volume halved to IDR7.4t and was dominated by medium and long term bonds.

Asian Dollar Credits. USD credits continued to see consolidation awaiting NFP report scheduled on Friday. According to Bloomberg news, default risk loomed as Noble Group will need to repay or further extend its $1.1b revolving credit facility due on 20 Dec.

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>


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