FW: Fixed Income Daily Pulse - 27 September 2017

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         The major market mover overnight was Yellen’s speech which was interpreted as hawkish after indicating that gradually raising rates would be appropriate despite inflation still remains soft and off the 2% target. This resulted in USD strengthening across coupled with UST yields rising, 10y touching 2.28% when EU markets opened. The local bond market resultantly was softer today in tandem with a weaker MYR as well at 4.2200 levels. With prices quoted wide, trading volume also was softer today with very little done during the day. Focus tomorrow will be the reopening auction of 15Y GII.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.375 +0.5 1 5-yr 3.575 +3.5 - 7-yr 3.805 +2.5 36 10-yr 3.885 +2.0 6 15-yr 4.325 +1.5 12 20-yr 4.530 +1.0 6 30-yr 4.800 - 1 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.500 0.0 3-yr 3.615 1.5 5-yr 3.730 1.0 7-yr 3.840 1.0 10-yr 3.970 0.0 Source: Bloomberg, AmBank