Friday, August 29, 2008

India, Malaysia, Philippines, Thailand: Asia Local Bond Preview

By Wes Goodman

Aug. 28 (Bloomberg) -- The following events and economic reports may influence trading in Asian local-currency bonds today. Yields are from the previous session.

China: China Mobile Ltd., the world's biggest phone company by market value, said second-quarter profit increased 51 percent, more than analysts estimated, after cutting prices to attract users. The central bank said yesterday it would sell 3 billion yuan ($438.6 million) of six-month bills today.

The yield on the 3.92 percent bond due July 2011 fell 2 basis points to 3.78 percent, according to the China Interbank Bond Market. A basis point is 0.01 percentage point.

India: Inflation probably accelerated to 12.81 percent in the week ended Aug. 16, the fastest pace since June 1992, according to the median estimate of a Bloomberg News survey of economists. The government will release the figure at about 5 p.m. today in New Delhi.

The yield on the 8.24 percent bond due April 2018 was little changed at 8.89 percent, according to the central bank's trading system.

Indonesia: The government is marketing 6.23 trillion rupiah ($680.1 million) of five-year debt to individual investors. The offer will close tomorrow, according to Bhimantara Widyajala, a director at the Ministry of Finance. Indonesia yesterday sold 28-, 91-and 182-day bills and 28-day Islamic bills.

The yield on the 9 percent bond due in September 2018 rose 5 basis points to 12.11 percent, according to the Inter Dealer Market Association.

Malaysia: The economy grew 6 percent in the second quarter, versus 7.1 percent in the previous three months, according to the median forecast of economists surveyed by Bloomberg News. Bank Negara Malaysia will report the figure at 6 p.m. in Kuala Lumpur tomorrow.

The yield on the 4.24 percent bond due February 2018 rose 2 basis points to 4.70 percent, according to Bursa Malaysia Bhd.

Philippines: The central bank will increase its benchmark interest rate by 0.25 percentage point to 6 percent today, according to 13 of 15 economists surveyed by Bloomberg News. Two predict a half-point jump to 6.25 percent. Gross domestic product growth probably slowed to 5 percent in the second quarter from a year earlier, from 5.2 percent in the previous three months, a separate survey showed before the government reports the figure today.

The yield on the 5.875 percent note due January 2018 fell 9 basis points to 8.29 percent, according to the Philippine Dealing & Exchange Corp.

Singapore: Lim Hwee Hua, senior minister of state with the Ministry of Finance and Ministry of Transport, said yesterday that investors handling the city-state's money ``had actually taken some precautionary measures early in the downturn'' in the global economy. ``The downturns also offer opportunities for our agencies to invest in good quality assets at prices that are attractive.''

The yield on the 4 percent bond maturing September 2018 rose 1 basis point to 3.11 percent, according to data compiled by Bloomberg.

South Korea: The Finance Ministry is scheduled to announce its debt sales for September today. The government yesterday vowed to stem losses in the won amid concern its slump to the weakest in almost four years against the dollar will further fan inflation. ``The government cannot but worry about the recent won decline,'' said Choi Jong Ku, the finance ministry's key currency official.

The yield on the 5.25 percent bond due March 2013 fell 2 basis points to 5.91 percent, according to Korea Securities Dealers Association.

Sri Lanka: The central bank will sell a combined 2 billion rupees ($18.5 million) of debt due in 2010, 2011 and 2012 today.

The yield on the 16 percent bond due in April 2009 was little changed at 18.25 percent, according to Ceylinco Shriram Securities Ltd.

Taiwan: The index of leading indicators, a gauge of economic conditions three months ahead, fell 0.6 percent in July from the previous month, compared with a 0.4 percent decline in June, the government's Council for Economic Planning and Development said yesterday.

The yield on the 2.375 percent bond maturing in March 2018 was little changed at 2.53 percent, according to Gretai Securities Market.

Thailand: The central bank raised its benchmark interest rate for a second straight month yesterday to tame the fastest inflation in a decade. The Bank of Thailand increased its one- day bond repurchase rate by a quarter point to 3.75 percent, the central bank said in Bangkok.

The yield on the 5.125 percent bond due in March 2018 fell 11 basis points to 4.57 percent, according to the Thai Bond Market Association.

To contact the reporter on this story: Wes Goodman in Singapore at

Last Updated: August 27, 2008 15:01 EDT

India, Malaysia, Philippines, Thailand: Asia Local Bond Preview
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