Local bond market was in a slight panic mode and continue to push yields higher on the back of some minor selling pressure while global yields inched up as well.

Today’s trade recap by our trading desk:-
·         The market today was mainly driven by the headlines of 1MDB related individuals facing lawsuits while having assets seized by the US government. Local bond market was in a slight panic mode and continue to push yields higher on the back of some minor selling pressure while global yields inched up as well. The yield curve gained 4-6.5bps today. The 5Y GII reopening auction closed with a strong BTC today at 2.454x and averaging 3.401%. Saw strong demand from real money accounts in this auction to balance out their duration after buying the long maturities. Post auction, the bond was traded lower than auction lows around 3.38%, indicating strong demand.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 2.890 +4.0 0 5-yr 3.230 +3.0 30 7-yr 3.480 +6.5 200 10-yr 3.650 +3.0 63 15-yr 3.955 +4.5 190 20-yr 4.200 +2.5 100 30-yr 4.525 +1.0 73 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.375 0.5 3-yr 3.410 0.0 5-yr 3.510 2.3 7-yr 3.630 1.5 10-yr 3.825 5.5 Source: Bloomberg, AmBank
Local News:
·         None.