After an action packed week which saw the local bonds rallying by 13-21bps on the curve throughout last week, on the back of strong buying interest driven by both local and foreign flows; this week started off rather mutedly as many traders started to go away on leave in conjunction with the Raya holidays while it is also independence day in US.

Today’s trade recap by our trading desk:-
·         After an action packed week which saw the local bonds rallying by 13-21bps on the curve throughout last week, on the back of strong buying interest driven by both local and foreign flows; this week started off rather mutedly as many traders started to go away on leave in conjunction with the Raya holidays while it is also independence day in US. Due to the thin liquidity in the market, small buying flows continue to push yields further down, especially on the 5Y MGS which dropped another 5 bps today. Volume traded today was rather thin, nothing compared to the daily average last week while the curve went down further by 1-2bps.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.010 -2.5 220 5-yr 3.275 -5.0 66 7-yr 3.560 -1.5 76 10-yr 3.695 -0.5 240 15-yr 4.065 0.0 26 20-yr 4.260 -1.0 24 30-yr 4.580 -2.0 175 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.500 -0.5 3-yr 3.505 0.0 5-yr 3.565 0.0 7-yr 3.695 0.0 10-yr 3.850 -1.0 Source: Bloomberg, AmBank
Local News:
·         None.