· During the FOMC meeting overnight, the committee members voted in fa

Today’s trade recap by our trading desk:-
·         During the FOMC meeting overnight, the committee members voted in favour of raising the fed fund rates by 25bps to 0.75-1.00%. However, the market perceived this to be a dovish hike by the Fed after Yellen indicated that rates don’t have to rise too much to get to neutral levels during the press conference. The market reacted accordingly and saw USD weakening 100pips on average across most majors and UST 10y yields saw a sharp drop of 10bps to 2.49 level. Local govvies opened firmer in the morning with trades mostly done at the belly of the curve. The curve eased by 3-7bps across at close in tandem with MYR strengthening 100pips to 4.4380 levels.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.470 -3.0 74 5-yr 3.835 -3.5 3 7-yr 4.020 -3.0 312 10-yr 4.100 -5.0 295 15-yr 4.490 -7.0 230 20-yr 4.665 -7.0 77 30-yr 4.835 -3.0 70 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.545 -0.5 3-yr 3.675 -3.0 5-yr 3.835 -3.5 7-yr 3.935 -4.0 10-yr 4.095 -3.5 Source: Bloomberg, AmBank