Fixed Income Weekly Pulse, 18 Apr 2016

 Highlights of the week:

·         Market sentiments take a positive spin on improving China’s data flows, ignoring bearish view of IMF and OECD

·         A better performing commodity tempts many players to dip a toe in riskier waters and edge away from safer shelters

·         Hints of more stimulus being added by the BoJ cause the selling of JPY

·         MAS’s announcement to shift to a “neutral” policy stance with zero appreciation surprise markets

·         RM trades in a wide range with an appreciation bias in the earlier part of the week before succumbing to depreciation pressure on stronger USD flows

Local govvies see belly to long-end of the yield curve edge lower in response of continue foreign inflows