FW: Fixed Income Daily Pulse - 16 November 2017

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         During the overnight market, UST saw its 5y/30y spread flattest since 2007; while the 10y saw a see saw move throughout the day and ended unchanged. With MYR seeing new lows yesterday at 4.1735, today the currency was just hovering above that level. Local market is cautious in view of GDP figure to be released tomorrow. A high number would reinforce the markets view of a rate hike next quarter. Trading activity today was driven by market players looking to lighten their risk; while there was a buying flow in the 10Y MGS which saw it traded 10bps lower from last done in market. Yields ended the day slightly higher on the front end of the curve by 2.5bps.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.540 +2.5 - 5-yr 3.780 +2.5 - 7-yr 3.975 - 11 10-yr 3.985 -1.5 34 15-yr 4.730 -2.0 3 20-yr 4.780 - 31 30-yr 4.975 - 6 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.640 0.5 3-yr 3.755 1.5 5-yr 3.845 2.5 7-yr 3.975 2.5 10-yr 4.085 1.0 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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