Fixed Income Daily Pulse, 14 June 2016

Good evening!
Today’s trade recap by our trading desk:-
·         Risk off sentiment increased in the markets regionally today as Brexit fears continue to increase according to latest polls while 10Y German Bunds went negative for the first time. The weakening global economic outlook resulted in increased demand for perceived safe heaven assets as UST 10Y dropped below 1.60 today as well. On the local bond space, there was some selling pressure which started with the GIIs today as traders looked to cut out some risk and take profit ahead of the few major event risk. Yield curve ended the day slightly higher by 1-3bps.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.235 +3.0 143 5-yr 3.505 +1.5 215 7-yr 3.760 +1.5 274 10-yr 3.885 +1.0 368 15-yr 4.205 +2.5 60 20-yr 4.300 - - 30-yr 4.705 +0.5 96 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.580 0.5 3-yr 3.595 2.0 5-yr 3.690 1.5 7-yr 3.845 2.5 10-yr 4.010 3.0 Source: Bloomberg, AmBank
Local News:
·         None.