FW: Fixed Income Daily Pulse - 1 March 2018

Today’s trade recap by our trading desk:-
·         The local bond space started the new month with continuous buying momentum on the back of global yields easing overnight. UST traded to a low of 2.84% after seeing strong month end buying flows. The local market saw decent bidding interest from the belly towards the back end of the curve as yields ended the day 1-4bps lower with 10Y MGS 11/27 and GII 7/27 dominating today’s flows. MYR however traded pretty much sideways throughout the day, hovering around 3.9260 levels. On the data front, overnight EU CPI came in-line with expectations while US preliminary GDP price data came in lower than consensus’ forecasts (A: 2.3%; F: 2.4% ; P: 2.4%). Global markets will be eyeing Fed Chair Powell’s Q&A session with Senate Banking Committee tonight; any hints of forward guidance will drive markets’ next move.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.405 - 4 5-yr 3.610 -3.0 133 7-yr 3.945 -1.0 115 10-yr 4.010 -2.0 743 15-yr 4.450 -1.0 58 20-yr 4.620 -0.5 107 30-yr 4.800 -3.5 92 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.760 0.0 3-yr 3.835 0.0 5-yr 3.918 0.0 7-yr 4.030 -2.0 10-yr 4.150 -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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