Fixed Income Daily Pulse, 16 June 2016

Good evening!
Today’s trade recap by our trading desk:-
·         FOMC struck a dovish tone overnight, and dot plots revealed that 6 members now only expect one hike this year. The local bond market started the morning with prices firmer as a result and saw some buying amongst the GII in low volume. Towards the end of the day, market started to give back some of the morning’s gains to stay neutral overnight in view of next week’s Brexit event risk. Yield curve ended the day 1-1.5bps lower.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.240 -1.0 223 5-yr 3.510 -1.0 347 7-yr 3.760 -1.5 152 10-yr 3.890 -0.5 280 15-yr 4.205 - - 20-yr 4.295 -0.5 0 30-yr 4.685 -0.5 0 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.590 +0.5 3-yr 3.605 -0.5 5-yr 3.685 -1.5 7-yr 3.830 -2.0 10-yr 4.010 -1.0 Source: Bloomberg, AmBank
Local News:
·         None.