Fixed Income Daily Pulse, 15 June 2016

Today’s trade recap by our trading desk:-
·         Some minor selling in the market continued today with focus on the GII10Y as market players look to de-risk going into FOMC decision tonight. Traded volume so far remains paper thin, with many others on the street taking a wait-and-see stance. Yield curve continue to inch up 1.5-2bps today.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.250 +1.5 61 5-yr 3.520 +1.5 152 7-yr 3.775 +1.5 100 10-yr 3.895 +1.0 80 15-yr 4.205 +2.5 2 20-yr 4.300 - - 30-yr 4.690 -1.5 40 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.585 0.5 3-yr 3.610 1.5 5-yr 3.700 1.0 7-yr 3.850 0.5 10-yr 4.020 1.0 Source: Bloomberg, AmBank
Local News:
·         Malaysia’s consumer price index (CPI) in May rose 2.0%. May inflation was attributed by higher prices of alcohol and tobacco products and food, which were offset by a decrease in transport costs.