FW: FI Research -Re-opening of 10-year MGS

 

 

Dear Readers,   Highlights of the report as follow:-

·         The re-opening of the 10-year MGS 11/27 with a size of RM3.5bil, with an additional RM0.5bil privately placed, recorded a decent bid-to-cover (BTC) ratio of 2.066 times. This BTC ratio was highest since the 10-year MGS re-opening on 28th July 2017 of 1.683%. ·         Overall, the spread has narrowed especially following a sharp rise in UST yield which hit a new four-year high of 2.950% due to expected inflation concerns, intensified further after FOMC meeting minutes stirred discussions about possibilities of more rate hikes in 2018. The UST yield eased off lower more recently after some dovish comments made by US Fed members. ·         The next tender to watch is the re-opening of the 30-year MGII in March 2018. This is also the third MGII re-opening in 2018. The last issuance of such papers was in July 2017 which reported a 1.915 times BTC ratio.

 

 

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

 

 

 

****************************************************************************************************************************************************************************************************************************************************************************************************************

DISCLAIMER:

This message may contain confidential and privileged information for its intended recipient(s) only. If you are not an intended recipient, you are hereby notified that any review, dissemination, and distribution, printing or copying of this message or any part thereof is strictly prohibited. Please delete the entire message and inform the sender of the error. Any opinions, conclusions and other information in this message that are unrelated to official business of AmBank Group are those of the individual sender and shall be understood as neither explicitly given nor endorsed by AmBank Group.

****************************************************************************************************************************************************************************************************************************************************************************************************************