FW: Fixed Income Daily Pulse - 27 February 2018

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         Focus in the local bond space today falls on 10Y MGS 11/27 re-opening auction which saw RM3.5bio issued with an additional RM0.5bio privately placed. The auction was well received with a BTC of 2.066x at a high of 4.064%, low of 4.036%, averaging at 4.055%. Post auction, the stock traded firmer to a low of 4.024%, 3.1bps lower than tender average. That aside, trading activities in the local bond market improved slightly today with prices firmer on the belly of the curve in both MGS and GII space. Yields ended the day largely unchanged, apart from the 10Y which eased 2bps. On the data front, DOSM will be releasing Malaysia’s January CPI today with consensus of 2.8%y/y (Prev: 3.5%).
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.385 - 130 5-yr 3.615 - 161 7-yr 3.970 - 29 10-yr 4.035 -2.0 1,101 15-yr 4.470 - 94 20-yr 4.635 - 18 30-yr 4.865 - 15 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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