FW: Fixed Income Daily Pulse - 14 September 2017

 

Good Evening,
Today’s trade recap by our trading desk:-
·         It was a rather quiet day in the local bond market today with MYR weakened slightly to 4.2020 levels. Main focus during the day was the 5Y MGS reopening auction. RM 4bio was issued with the auction closing with a decently strong BTC of 1.899x, averaging 3.501%. Strong bids were seen from foreign counterparties during the auction; riding the momentum of inflows into EM space and a view of MYR to strengthen further. Post auction, the bond traded slightly below the average while market volume was relatively thin today. Yield curve ended the day largely unchanged from the day before.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.325 +1.5 22 5-yr 3.500 -0.5 23 7-yr 3.780 - 18 10-yr 3.855 +0.5 41 15-yr 4.285 - 110 20-yr 4.490 - - 30-yr 4.740 - 4 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.480 0.0 3-yr 3.585 0.8 5-yr 3.690 -0.5 7-yr 3.800 0.5 10-yr 3.930 1.0 Source: Bloomberg, AmBank