AsianBondsOnline News Highlights – Week of 10 – 14 March 2014

18-Mar-2014 Intellasia | AsianBondsOnline | 6:00 AM Print This Post

The Bank of Thailand’s Monetary Policy Committee decided on 12 March to reduce the policy rate by 25 basis points (bps) to 2.00 percent. Bank Indonesia’s Board of Governors decided to keep its benchmark rate steady at 7.50 percent. Bank Indonesia also left the lending facility rate unchanged at 7.50 percent and the deposit facility rate at 5.75 percent.

Meanwhile, The Bank of Korea’s Monetary Policy Committee decided to keep its base rate steady at 2.50 percent. The Bank of Japan (BOJ) announced that it would maintain its monetary easing measures.

* The People’s Bank of China (PBOC) on 15 March, widened the daily trading band by which the renminbi can trade against the US dollar. The renminbi can now trade 2 percent above or below the daily reference rate. Previously the trading limit was set at 1 percent.

* Consumer prices in the People’s Republic of China (PRC) rose at a slower pace in February, gaining 2.0 percent year-on-year (y-o-y) compared with 2.5 percent in January.

* In February the PRC reported its first trade deficit since April 2013 due to the Lunar New Year holiday. Exports in February fell 18.1 percent y-o-y while imports rose 10.1 percent. As a result, the PRC reported a trade deficit of $23.0 billion in February.

* Exports from Malaysia rose 12.2 percent y-o-y to MYR64.0 billion in January, following 14.4 percent y-o-y growth in December. Imports rose 7.2 percent y-o-y in January to MYR57.6 billion. As a result, the trade surplus reached MYR6.4 billion. In the Philippines, merchandise exports rose 9.3 percent y-o-y in January to $4.3 billion. Singapore’s non-oil domestic exports (NODX) increased 9.1 percent y-o-y in February. On a seasonally adjusted basis, NODX increased 7.2 percent m-o-m.

* Retail sales growth in the PRC slowed to 11.8 percent y-o-y in January-February from 13.6 percent in December. On a seasonally adjusted m-o-m basis, Singapore’s retail sales slightly increased by 0.6 percent in January.

* Malaysia’s industrial production index (IPI) rose 3.6 percent y-o-y in January following a 1.7 percent rise in the previous month.

* Beijing Infrastructure Investment issued a $300 million 5-year bond last week. The bond was issued at a coupon rate of 3.625 percent and priced to yield 3.705 percent.

* The Indonesian government raised $350 million from the sale of $-denominated bonds for the domestic market. The bonds carried a maturity of 3 years and a coupon of 3.5 percent. The bonds were priced to yield 2.77 percent. Singapore’s United Overseas Bank (UOB) raised $800 million from the sale of its first Basel III-compliant $-denominated subordinated bond. The 10.5-year bond carries a coupon rate of 3.75 percent and is callable after 5.5 years.

* government bond yields fell last week for most tenors in Indonesia, the Republic of Korea, the Philippines, Singapore, Thailand, and Vietnam, and yield movements were mixed in the PRC; Hong Kong, China; and Malaysia. Yield spreads between 2- and 10- year maturities widened in the PRC, Indonesia, Thailand and Vietnam, while spreads remain unchanged in Singapore and narrowed in other emerging East Asian markets.

* The upcoming issue of the Asia Bond Monitor (ABM) will be released on 20 March in Jakarta, Indonesia and will available for download on the AsianBondsOnline website.

To read the full report, data and graphs go to http://www.asianbondsonline.adb.org/newsletters/abowdh20140317.pdf?src=newsletter&id=njRXhtdJ2ITBQ1JDrZA115l5oqQUYt

 


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