The pressure continues on the back end of the curve today as it continued to steepen by 3-4bps at the back after further selling. The rest of the curve on the other hand remains largely unchanged for the day as traded volume

Good Evening,
Today’s trade recap by our trading desk:-
·         The pressure continues on the back end of the curve today as it continued to steepen by 3-4bps at the back after further selling. The rest of the curve on the other hand remains largely unchanged for the day as traded volume was mostly concentrated on the front end again. Major events coming up tonight on ECB’s rate decision as well as tomorrow’s Budget for 2017 to be delivered by PM Najib. Focus will be on ECB’s tone on the recent rumour regarding QE tapering while Malaysia’s Budget next year is expected to maintain a fiscal deficit of -3.1%. MYR strengthen by 100pips today on the back of oil prices rising overnight after a lower than expected inventory data in the US.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.040 0.0 4 5-yr 3.330 0.0 10 7-yr 3.565 +1.5 121 10-yr 3.640 +1.0 1 15-yr 4.105 +3.0 39 20-yr 4.335 +4.0 114 30-yr 4.580 +3.0 0 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.365 -0.5 3-yr 3.445 +2.0 5-yr 3.585 +1.5 7-yr 3.750 -0.5 10-yr 3.985 +1.0 Source: Bloomberg, AmBank
Local News:
None.