Fixed Income Daily Pulse, 24 May 2016

Today’s trade recap by our trading desk:-
·         Local govvies suffered mild bearishness today as MYR weakened against USD on the back of more hawkish talks by Fed members and higher chance of a hike in June Fed meeting. Ringgit continue to weaken against USD after breaking the 4.1000 resistance before hitting intraday high of 4.1298. MGS curve inched higher by 3-4 bps with the selling activities driven by local players.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.245 - - 5-yr 3.380 0.0 6 7-yr 3.800 +3.0 425 10-yr 3.915 +3.0 530 15-yr 4.205 - - 20-yr 4.315 0.0 0 30-yr 4.675 0.0 30 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.615 +2.0 3-yr 3.615 -0.5 5-yr 3.710 +1.0 7-yr 3.860 +0.5 10-yr 4.030 +0.5 Source: Bloomberg, AmBank
Local News:
·         None.