Tuesday, October 24, 2017

FW: Fixed Income Daily Pulse - 23 October 2017

 

 

 

Good Evening,

 

Today’s trade recap by our trading desk:-

 

·         On the back of renewed optimism for a tax reform, UST yields rose towards 2.40% and USD rallied. The strength of USD was also aided by Abe retaining his coalition’s two-thirds majority during yesterday’s election, on the back of his pro easing policies. These developments sparked a selloff in the local bond market today, with yields rising sharply by 5-8bps across the curve while MYR weakens to 4.2350 levels as well. The sharp rising in yields was also a result of selling pressure in the market with paper thin liquidity.

Malaysia Government Bonds Benchmark Issues

MGS

Closing Level (%)

Change (bp)

Volume (RM m)

3-yr

3.480

+6.5

54

5-yr

3.695

+8.0

32

7-yr

3.965

+5.0

15

10-yr

3.985

+6.5

20

15-yr

4.400

+5.5

-

20-yr

4.580

+3.0

1

30-yr

4.845

+2.5

-

Source: BondStream, AmBank

Interest Rate Swap Closing Rates

IRS

Closing Yield (%)

Change (bp)

1-yr

3.520

1.0

3-yr

3.645

0.5

5-yr

3.790

2.7

7-yr

3.920

6.0

10-yr

4.040

3.0

Source: Bloomberg, AmBank

 

Best regards,

Fixed Income Research & Strategy

AmBank Research, AmBank (M) Berhad

+603 2036 2292 (DL) +03 2031 7218 (Fax)

Level 15, Bangunan AmBank Group, 55 Jalan Raja Chulan, 50200 Kuala Lumpur

 

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