· The UST corrected slightly overnight in tandem with the rate hike the day before, rising 3-4bps across the curve, in tandem with rising global yields as well. This was al

Today’s trade recap by our trading desk:-
·         The UST corrected slightly overnight in tandem with the rate hike the day before, rising 3-4bps across the curve, in tandem with rising global yields as well. This was also contributed by BOE’s surprise yesterday when 3 out of 8 voters voted for a rate hike. In the local market, coupled with a weaker MYR, the bond market saw softer prices today with some selling pressure at the belly of the curve, with particular focus in the GII space. Yields ended the day 2-3bps higher at the belly while the front and back end of the curve was unchanged.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.285 - 22 5-yr 3.570 +2.5 11 7-yr 3.845 +3.0 0 10-yr 3.880 +1.5 6 15-yr 4.335 +2.5 5 20-yr 4.500 - 20 30-yr 4.735 - 13 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.510 0.5 3-yr 3.605 -0.1 5-yr 3.690 0.5 7-yr 3.795 0.0 10-yr 3.950 1.0 Source: Bloomberg, AmBank