FW: Fixed Income Daily Pulse - 06 February 2018

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         A sharp sell-off in the US equity market overnight saw Dow Jones crashing over 1000 points for the first time since 2011 and sparked a risk off sentiment which saw UST 10y easing from 2.88% to a low of 2.66% before rebounding to 2.75% on a very volatile day. On the local front, bond space was rather quiet despite the global movements. Focus was generally on the GII 7y new issuance. The G8/25 saw RM3.0bio up for auction and another RM1.0bio privately placed. The auction closed with a strong BTC of 2.284x and averaged 4.128%. Post auction the stock saw further buying flows which saw it traded about 1bps lower than the average. With the muted trading activity, local bond yields ended the day unchanged from the day before. MYR on the other hand saw it weakening to 3.9170 levels on the back of risk off sentiments and USD buying globally.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.390 - - 5-yr 3.605 - 36 7-yr 3.930 - 90 10-yr 3.960 - 102 15-yr 4.335 - 47 20-yr 4.620 - 55 30-yr 4.880 - 0 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.760 -0.8 3-yr 3.825 -1.0 5-yr 3.905 -1.5 7-yr 4.015 -1.5 10-yr 4.130 -2.0 Source: Bloomberg, AmBank

 

Best regards,

Fixed Income Research & Strategy

AmBank Research, AmBank (M) Berhad

+603 2036 2255 (DL) +03 2031 7218 (Fax)

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

 

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