Fixed Income Weekly Pulse, 07 Sep 2015

 Highlights of the week:

·         Policy divergence and risk aversion dominates market plays on the back of volatile stock markets and a multi-year lows factory data from the world’s two biggest economies

·         Mr Draghi  says ECB could expand its QE program beyond its plan expiry at September 2016

·         America’s trade gap narrow to US$41.9 billion in July from US$45.1 in the preceding month of which the smaller shortfall bodes well for Q3 real GDP growth

·         RM fall 1.58% against USD due to strong rebound of cross SGD/MYR, increase in 5-year CDS and weakening macroeconomic data

·         Trading activities in local govvies were lighter this week as Ringgit Malaysia resumed its depreciation path