The market today was driven by comments from US President Donald Trump overnight. He mentioned during an interview that he won’t label China as currency manipulator; favoring low interest rate policy as well as wanting a weaker USD which is better for bus

Good Evening,
Today’s trade recap by our trading desk:-
·         The market today was driven by comments from US President Donald Trump overnight. He mentioned during an interview that he won’t label China as currency manipulator; favoring low interest rate policy as well as wanting a weaker USD which is better for business. These comments was a 180 degree turn from what he mentioned before and it sent yields tumbling further and USD weakening further. UST10y is trading at year to date low of 2.225% levels, 8 bps lower from the day before. The local market today started softly but the pace picked up during the afternoon session after a strong 5y GII auction. The new 5y GII auction closed with a very strong BTC of 2.773x, averaging 3.948 and RM4.0bio issued. Post auction, the stock was taken lower than auction low and settled at 3.90% level; in tandem with buying flows seen across other MGS benchmarks. Yield curve ended the day 2.5-3.5 bps lower and MYR traded stronger at 4.4180 levels.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.515 -2.5 178 5-yr 3.820 -2.0 11 7-yr 4.020 -3.0 - 10-yr 4.100 -3.5 298 15-yr 4.495 -2.5 90 20-yr 4.785 -0.5 9 30-yr 4.835 - - Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.550 +0.5 3-yr 3.692 -1.3 5-yr 3.820 -2.5 7-yr 3.925 -1.5 10-yr 4.070 -1.0 Source: Bloomberg, AmBank