FW: Fixed Income Daily Pulse - 19 January 2018

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         UST sold off overnight and the 10y yield broke 2.60%, towards a high of 2.64%. This resulted in local yields rising today as well, with the MGS curve rising 4-6 bps across. Despite the pressure on the curve, traded volume throughout the day was relatively light as many in the market are light on risk; waiting for MPC next week before taking next move. It’s still a coin toss at the moment whether BNM will hike rates or not despite MYR strengthening further to a low of 3.9350 levels today.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.350 +3.0 51 5-yr 3.590 +4.0 1 7-yr 3.945 +5.5 31 10-yr 3.960 +5.0 4 15-yr 4.455 +5.5 13 20-yr 4.650 +6.0 - 30-yr 4.880 +1..0 46 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.640 -0.5 3-yr 3.783 0.2 5-yr 3.878 3.3 7-yr 3.963 1.2 10-yr 4.100 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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