FW: Fixed Income Daily Pulse - 14 March 2018

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         Overnight US February CPI came in line with market expectations of 0.2% (P: 0.5%); reinforcing outlook by Fed members for 3 rate hikes this year. The Trump administration on the other hand announced dismissal of Secretary of State Tillerson, and nominated CIA Director Mike Pompeo as replacement. As such, market witnessed risk-off sentiment with UST 10Y easing 3bps to 2.830% levels today. On the local front, buying momentum continued today with yields easing 1-3bps across the curve. Market interests were especially strong for benchmarks at the belly, notably the 7y and 10y benchmarks on both curve with tight two-way price action seen in the market. MYR started the day strong, strengthening towards 3.8920 levels before paring gains to trade around yesterday’s level 100 pips higher.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.400 -0.5 111 5-yr 3.570 -1.5 218 7-yr 3.835 -2.5 670 10-yr 3.945 -2.0 370 15-yr 4.410 -0.5 100 20-yr 4.550 -1.5 90 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 3.815 1.0 5-yr 3.870 -1.5 7-yr 3.990 -2.0 10-yr 4.120 -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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