FW: Fixed Income Daily Pulse - 17 August 2017

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         FOMC meeting minutes was released overnight and many Fed members saw that inflation might stay below the targeted 2% longer than expected; while agreeing that the normalization of balance sheet should start soon. UST yields fells 5bps on the 10Y and USD weakened across subsequently. On the back of the overnight events, it sparked a buying spree this morning on the front end of the curve. The small rally was seen with a strong 2-way price action in the secondary market. Traded volume picked up today as yields eased 3-3.5bps on the front end while the rest of the curve eased by 1bps.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.410 -3.0 88 5-yr 3.595 -3.5 80 7-yr 3.895 -1.5 32 10-yr 3.990 -1.0 47 15-yr 4.375 -1.0 137 20-yr 4.555 -1.0 1 30-yr 4.760 -1.0 18 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.490 0.0 3-yr 3.635 -0.5 5-yr 3.740 -1.5 7-yr 3.850 -1.0 10-yr 3.980 -0.5 Source: Bloomberg, AmBank