FW: Fixed Income Daily Pulse - 12 March 2018

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         On Friday night, US February NFP came in stronger-than-expected at 313k (F: 200k; P: 239k) while m/m wage growth fell short slightly at 0.1% (F: 0.2%; P: 0.3%). As such, global markets witnessed slight risk-on sentiments as market participants brushed off trade war concerns on the back of better job data. UST 10Y ticked up slightly to 2.905% levels while Asian equities were quite bullish. Reaction from the local bond market however was muted with lackluster trading activities in both MGS and GII space. Yields ended the day largely unchanged with some collecting interest on future benchmark stocks like MGS 11/21. Focus tomorrow will be on the new-issue MGS maturing Mar 2025 which will replace MGS 9/24 as the new 7y benchmark. Issue size is RM3.0bio with an additional RM1.0bio privately placed. WI was last quoted at 3.930-3.860% with no trades reported thus far.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.405 - - 5-yr 3.600 +1.5 36 7-yr 3.895 +1.0 21 10-yr 3.980 +0.5 76 15-yr 4.415 - 14 20-yr 4.565 - - 30-yr 4.780 - - Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.750 0.5 3-yr 3.810 0.5 5-yr 3.890 0.0 7-yr 4.020 1.0 10-yr 4.140 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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