The movement in the govvies market today was dictated by selling pressure on the back end of the curve as the 15Y and 20Y MGS was sold multiple times; resulting in curve steepening by 3-5bps on the back end. Nevertheless, the bel

Good Evening,
Today’s trade recap by our trading desk:-
·         The movement in the govvies market today was dictated by selling pressure on the back end of the curve as the 15Y and 20Y MGS was sold multiple times; resulting in curve steepening by 3-5bps on the back end. Nevertheless, the belly of the curve was still supported as it only inched up by 1bps on light volume. While traded volume on all benchmarks were very thin, most demand was seen on the front end of the curve as foreign driven buying flows were concentrated on the 2017 maturity stocks. MYR traded sideways today around 4.1900 levels even though USD weakened overnight with UST yields dropping by 4-5bps as well.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.040 +2.0 247 5-yr 3.330 +1.0 37 7-yr 3.550 +1.0 50 10-yr 3.630 0.0 74 15-yr 4.090 +1.0 22 20-yr 4.295 +5.5 97 30-yr 4.550 +3.0 0 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.370 +0.0 3-yr 3.425 -1.0 5-yr 3.570 -0.5 7-yr 3.755 +0.0 10-yr 3.975 +0.5 Source: Bloomberg, AmBank
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