Fixed Income Daily Pulse, 13 June 2016

Good evening!
Today’s trade recap by our trading desk:-
·         A very quiet start to the week after last week’s action as MYR was weaker today on the back of retreating oil prices as well as increased Brexit fears. There was some buying flows in the GII space today on the belly of the curve as it was lagging after MGS’ rally last week. Traded volume on the 5-10Y GII benchmarks were pretty healthy while the MGS space was lacklustre today. Yield curve came off slightly by 0.5-1bps as prices were well within range of last week’s close. Many traders are staying on the side-lines in view of the upcoming FOMC meeting this week as well as Brexit referendum being 10 days away.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.205 -0.5 19 5-yr 3.490 - - 7-yr 3.745 -0.5 39 10-yr 3.875 - 169 15-yr 4.180 -1.5 70 20-yr 4.300 - - 30-yr 4.700 -0.5 - Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.575 -1.0 3-yr 3.575 -2.0 5-yr 3.675 -3.0 7-yr 3.820 -2.5 10-yr 3.980 -3.0 Source: Bloomberg, AmBank
Local News:
·         None.