· The market started the week rather mutedly as local bond prices continue to soften in the abs

Good Evening,
Today’s trade recap by our trading desk:-
·         The market started the week rather mutedly as local bond prices continue to soften in the absence of buy flows. Trades were thin and mostly focused on the short ends as the yield curve rose by 1-1.5bps. Market is expected to be volatile this week in view of the upcoming Jackson Hole Economic Symposium this coming week while UST10Y rose to post brexit high at 1.59% level after hawkish statements by Fed Vice Chairman Stanley Fischer.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 2.940 +1.5 0 5-yr 3.205 +1.0 115 7-yr 3.450 +0.5 40 10-yr 3.545 +2.0 10 15-yr 3.885 +1.0 55 20-yr 4.175 0.0 124 30-yr 4.470 0.0 8 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.325 +1.0 3-yr 3.325 0.0 5-yr 3.435 +1.0 7-yr 3.575 +2.0 10-yr 3.740 +3.0 Source: Bloomberg, AmBank
Local News:
The international reserves of Bank Negara Malaysia amounted to RM391.9 billion (equivalent to US$97.5 billion) as at 15th August 2016, an increase of RM800 million from RM391.1 billion as at end of July. The reserves position is sufficient to finance 8.1 months of retained imports and is 1.2 times the short-term external debt.