FW: Fixed Income Daily Pulse - 14 August 2017

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         On Friday night, US CPI rose less than expected in July, marking the fifth straight miss in core CPI which then the odds for a December hike dropping to 25% from 40% earlier on. UST10y was traded to as low 2.18% before closing at 2.19%. On local bonds, main focus today was on the BNM tender for the RM 3.5b new issue 3.5y MGS maturing on Feb 2021. The tender garnered lower than expected bid-to-cover of 1.706x averaging at 3.441%; ranging from 3.455%-3.422%. Prior the tender, secondary market activity was quite active and we noticed some foreign buying interests in the MGS space. However, market started to trade sideways post tender and yields closed 1-2 bps lower for the 5-10y papers while the rest were unchanged.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.440 - 65 5-yr 3.640 -2.0 - 7-yr 3.900 -1.0 - 10-yr 3.985 -1.0 6 15-yr 4.405 - 1 20-yr 4.575 - - 30-yr 4.800 - 11 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.490 0.5 3-yr 3.630 0.0 5-yr 3.750 0.0 7-yr 3.855 0.0 10-yr 3.990 -1.0 Source: Bloomberg, AmBank