Fixed Income Daily Pulse, 26 May 2016

Today’s trade recap by our trading desk:-
·         It was a rather mundane day in the local bond market today as it traded sideways with prices around the same levels as yesterday’s closing. Selling pressure on the benchmark has stopped saw it being supported at these levels. Most of the trades today were on the short ends as foreigners came back to buy the short papers in tandem with the strengthening MYR and favorable carry trades for them. Stocks below 3 months maturity saw a 55bps swing in 2 days (3.25-2.70 traded range). Yield curve ended the day unchanged apart from the front end of the curve as the 3Y benchmark came off by 3bps.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.255 -3.0 180 5-yr 3.460 0.0 36 7-yr 3.805 0.0 120 10-yr 3.900 -0.5 200 15-yr 4.225 0.0 20 20-yr 4.330 0.0 20 30-yr 4.705 - - Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.610 0.0 3-yr 3.610 0.0 5-yr 3.690 -2.0 7-yr 3.850 -2.0 10-yr 4.030 -2.0 Source: Bloomberg, AmBank
Local News:
·         None.