FW: Fixed Income Daily Pulse - 21 August 2017

 

Good Evening,
Today’s trade recap by our trading desk:-
·         Trump’s chief strategist Steve Bannon was ousted late Friday evening, investors viewing the decision as removing an advocate for protectionism and confrontation with China over trade. This resulted in risk on sentiments subsequently. Bullish momentum in the local bond space continued today with the short ends up to 10y seeing strong demand as yields closing the day 1-3bps lower from the front end of the curve till 10y while the back end stayed unchanged. Strong price action was seen in the market with healthy traded volume.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.360 -3.0 2 5-yr 3.560 -2.5 20 7-yr 3.890 -0.5 1 10-yr 3.970 -1.0 1 15-yr 4.375 - - 20-yr 4.555 - - 30-yr 4.760 - - Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.495 0.5 3-yr 3.635 -0.3 5-yr 3.748 0.7 7-yr 3.850 0.0 10-yr 3.970 0.0 Source: Bloomberg, AmBank