Fixed Income Daily Pulse, 03 Feb 2016

Today’s trade recap by our trading desk:-
·         As the MYR posted further losses on the back of a renewed selloff in global stocks and weaker oil prices which triggered a fresh bout of risk aversion, the local govvies market was tilted bearish today. There was some minor selling pressure on the 10Y MGS and GII benchmarks as traders took the opportunity to take profit after the long rally last month. The yield curve shifted upwards by 3-5bps today at close. Foreign players are still staying on the sidelines despite the weak sentiment in the market, only actively trading the short end bonds for MYR play.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.265 +2.5 54 5-yr 3.390 +1.0 54 7-yr 3.750 +3.5 345 10-yr 3.940 +5.0 443 15-yr 4.240 -1.0 261 20-yr 4.410 - - 30-yr 4.770 +3.0 40 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.680 0.5 3-yr 3.720 1.0 5-yr 3.830 1.0 7-yr 3.960 1.0 10-yr 4.160 1.0 Source: Bloomberg, AmBank
Local News:
·         None.