FW: Fixed Income Daily Pulse - 12 September 2017

 

Good Evening,
Today’s trade recap by our trading desk:-
·         During the overnight market, the USD picked up a bid and UST shot up to 2.14% levels on the back of reversal on last week’s risk off trades as Irma weakened after landfall while North Korea was rather quiet despite its Foundation Day celebrations over the weekend. In tandem with the overnight move, MYR was about 100pips weaker today at 4.2080 levels while the bond market was softer on the back of some profit taking in the market. The yield curve ended the day 2-3bps higher across on light volume selling. The reopening auction for 5Y MGS was also announced today. RM4.0bio will be issued with WI trading at 3.51-50 level at close.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.330 +2.0 15 5-yr 3.505 +3.0 6 7-yr 3.785 +2.0 125 10-yr 3.865 +3.0 - 15-yr 4.295 +1.5 30 20-yr 4.500 +1.0 0 30-yr 4.735 - 1 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.480 0.0 3-yr 3.585 0.0 5-yr 3.695 1.5 7-yr 3.795 1.5 10-yr 3.930 0.5 Source: Bloomberg, AmBank