Thursday, February 16, 2017

The main talk of the day was Yellen’s hawkish testimony before congress overnight; reiterating that 3 hikes this year is very

Today’s trade recap by our trading desk:-

·         The main talk of the day was Yellen’s hawkish testimony before congress overnight; reiterating that 3 hikes this year is very likely in line with the Fed’s forecast. This resulted in USD strengthening across the board while UST 10y climbed 4bps overnight. Despite the hawkishness local govvies traded sideways today on light volume. Yield curve inched up slightly by 1-2bps while MYR remains just below 4.4500 levels.


Malaysia Government Bonds Benchmark Issues
MGS
Closing Level (%)
Change (bp)
Volume (RM m)
3-yr
3.400
+4.0
62
5-yr
3.700
-0.5
30
7-yr
3.925
+0.5
52
10-yr
4.120
+1.0
170
15-yr
4.525
-1.5
2
20-yr
4.685
+2.0
7
30-yr
4.780
-2.0
-
Source: BondStream, AmBank
Interest Rate Swap Closing Rates
IRS
Closing Yield (%)
Change (bp)
1-yr
3.490
0.0
3-yr
3.650
-0.5
5-yr
3.805
0.5
7-yr
3.915
0.0
10-yr
4.080
1.0
Source: Bloomberg, AmBank

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