Fixed Income Daily Pulse, 29 March 2016

Today’s trade recap by our trading desk:-
·         In the morning, govvies market was again quiet in the absence of any market moving news. Traders stayed on the sideline, perhaps looking at tomorrow’s auction as well as anticipating Yellen’s speech tonight which might give a slight colour of what would be the Fed’s next move. It was much more livelier in the afternoon session, as we noticed some good demand on the GII papers, especially 3 year GII 5/18. Some interest were seen on MGS 10y 9/25 which was last traded 2bps lower than yesterday’s closing level. Tomorrow, there will be the auction for the 15y MGS reopening 6/31 with issue size of RM 2.5B. No trades were reported for WI and was seen quoted at bid 4.30%.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.265 -0.5 3 5-yr 3.420 - 1 7-yr 3.740 -0.5 76 10-yr 3.860 -2.0 285 15-yr 4.250 - 8 20-yr 4.385 - - 30-yr 4.725 - - Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.625 1.0 3-yr 3.640 1.0 5-yr 3.740 2.0 7-yr 3.870 -0.5 10-yr 4.060 -1.0 Source: Bloomberg, AmBank
Local News:
·         None.