Fixed Income Daily Pulse, 20 June 2016

Today’s trade recap by our trading desk:-
·         Brexit fears have been subdued after the weekend as new polls showed that Bremain takes the lead now. As a result, yields for UK Gilts went up by 8bps while UST also was up by 9bps in tandem with the strength in GBP. Market was inclined towards a risk on sentiment. In the local bond market, there were buying flows today in the short end bonds up to the 5Y at the belly of the curve. These flows were mainly foreign driven on the back of positive sentiment as MYR also strengthen by 400 pips to close at 4.06 level today.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.235 -0.5 2 5-yr 3.465 -5.5 285 7-yr 3.760 -2.5 53 10-yr 3.895 +0.5 33 15-yr 4.205 - - 20-yr 4.295 - - 30-yr 4.705 - - Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.585 -0.5 3-yr 3.595 -0.5 5-yr 3.685 -1.5 7-yr 3.825 -1.5 10-yr 4.000 0.0 Source: Bloomberg, AmBank
Local News:
·         None.