FW: Fixed Income Daily Pulse - 26 February 2018

Today’s trade recap by our trading desk:-
·         After some dovish statements by Fed members late last week, UST yields started easing towards 2.85%. In tandem with that movement, local bonds saw firmer prices today from the belly towards the back end of the curve as yields eased 2-4 bps on very thin traded volume. On the back of improved risk appetite, MYR also strengthened in tandem with its regional peers to 3.9050 levels. The local market will be eyeing Malaysia’s January CPI due this Wednesday (F: 2.90%; P: 3.50%) while there will be several key speeches by central bankers in the US and EU; Most notably Jerome Powell, who will be testifying on the Fed’s semi-annual report on monetary policy and the economy before US House of Representative and Senate mid-week. His testimonial may provide hints of his direction in his first FOMC meeting as Fed Chair this March.   ·         Focus tomorrow will be on the 10Y MGS re-opening auction which will see RM3.5bio issued with an additional RM0.5bio privately placed. WI was last seen quoted 4.055%-4.050%, last done at 4.055%.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.385 - 10 5-yr 3.615 - - 7-yr 3.970 -4.0 98 10-yr 4.055 -2.5 208 15-yr 4.470 -4.5 184 20-yr 4.635 -2.5 31 30-yr 4.865 -1.5 60 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.770 0.0 3-yr 3.841 0.4 5-yr 3.925 -0.5 7-yr 4.050 0.0 10-yr 4.170 0.0 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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