· The market continued to be muted today as traders are uncertain on the effects of

Today’s trade recap by our trading desk:-
·         The market continued to be muted today as traders are uncertain on the effects of Article 50 when it is triggered tomorrow. In addition, there was news of BNM seeing inflation even higher in the coming months, while they would want to keep interest rates low to support the economy. With a rising likelihood of an OPR hike, due to current negative real interest rate conditions, market saw some selling pressure on the front end of the curve during the afternoon session; with the yield curve rising 2-4bps while IRS steepened by 2-3bps. A new issuance of 7Y MGS was also announced today with RM3.0bio for auction and another RM1.0bio to be privately placed. WI was quoted wide 4.07-95 level with nothing done so far.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.490 +2.5 0 5-yr 3.825 +2.0 7 7-yr 4.030 +2.5 40 10-yr 4.140 +4.5 48 15-yr 4.520 +1.0 30 20-yr 4.665 0.0 15 30-yr 4.820 0.0 0 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.550 0.0 3-yr 3.720 6.0 5-yr 3.875 3.0 7-yr 3.968 1.3 10-yr 4.120 1.0 Source: Bloomberg, AmBank