FW: Fixed Income Daily Pulse - 13 March 2018 (Amended)

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         Main focus was on the new-issuance auction of 7Y MGS benchmark M3/25 which saw RM3.0bio issued with an additional RM1.0bio privately placed. The auction closed with a strong BTC of 2.347x, averaging at 3.882% (H: 3.889; L: 3.870). Post auction, the stock saw further demand and was last traded at 3.852%, 3.0bps below the tender average. That aside, trading activities in the local bond market largely improved today. Buying flows were skewed towards the belly of the curve with yields easing 1.5-3.5bps; with volume heaviest on the 5y-10y MGS benchmarks. On the global front, market players will be eyeing US February CPI tonight (F: 0.2%; P: 0.5%) which could potentially drive the market tomorrow.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.405 - 34 5-yr 3.585 -1.5 443 7-yr 3.860 -3.5 50 10-yr 3.965 -1.5 767 15-yr 4.415 - 13 20-yr 4.565 - 5 30-yr 4.780 - - Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.750 0.0 3-yr 3.805 -0.5 5-yr 3.885 -0.5 7-yr 4.010 -1.0 10-yr 4.130 -1.0 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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