Friday, March 17, 2017

· 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

No comments:

Post a Comment

Related Posts with Thumbnails