· Buying momentum in the local bond market yesterday continued today with the 3

Good Evening,
Today’s trade recap by our trading desk:-
·        Buying momentum in the local bond market yesterday continued today with the 30Y MGS taking the lead, being taken 10bps lower in the morning before seeing the yield curve settling 4-8bps lower today. Despite prices firmer, offers were scarce especially on the back end of the curve. As such, trades were limited today. The market is now focused on bond-swap trades by buying bond and paying IRS as this gives an attractive carry in yield.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.850 -2.0 65 5-yr 4.020 -4.5 153 7-yr 4.230 -5.0 143 10-yr 4.295 -8.5 33 15-yr 4.785 -4.5 35 20-yr 4.915 -5.5 7 30-yr 4.930 -7.0 180 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.500 +0.0 3-yr 3.675 -5.5 5-yr 3.910 -3.5 7-yr 4.005 -0.5 10-yr 4.170 -4.5 Source: Bloomberg, AmBank
Local News:
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