Fixed Income Daily Pulse, 21 Oct 2015

Today’s trade recap by our trading desk:-

· Activity in the govvies market today was slightly more subdued today; only seeing decent volume done on few bonds. There was particular focus on the 7Y MGS with a few big tickets going through, a continuation from yesterday’s flow and a total of c.RM220mio traded. WI has been quiet so far, last quoted at 4.04-4.025. 15Y MGS was also well traded today, with some buyers meeting sellers who were looking to take profit and perhaps free up some risk in preparation for tomorrow’s auction.

MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.630 -1.0 160 5-yr 3.760 +2.0 29 7-yr 4.035 +1.5 255 10-yr 4.135 +0.5 75 15-yr 4.365 -1.5 121 20-yr 4.470 0.0 0 30-yr 4.720 0.0 0 IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.860 0.0 3-yr 4.005 -2.0 5-yr 4.210 -0.5 7-yr 4.350 0.0 10-yr 4.550 0.5 Source: Bloomberg, AmBank          Source: BondStream, AmBank                      Local News: None.