FW: Fixed Income Daily Pulse - 27 March 2018

 

 

Our sincere apologies for the delay.

Good Morning,
Tuesday’s trade recap by our trading desk:-
·         Overnight US-China trade representative were reportedly in talks to resolve trade issues; with Trump administration urging China to lower tariffs on cars and open its market to US financial services as part of talks to resolve tensions. While these talks have yet to produce any concrete results, trade war fears tapered off slightly with UST 10Y inching up to 2.850% levels while the Dow rallied by almost 700 points. Reaction from the local bond market however remained muted with lackluster trading activities in both MGS and GII space. Yields were largely unchanged with paper thin flows scattered across the curve. MYR on the other hand continued yesterday’s momentum, traded stronger against the greenback at 3.8720 levels; almost 400pips stronger in the span of two days. BNM also announced a reopening auction for MGS 11/21 this Thursday with an issue size of RM3.0bio. The stock will replace MGS 2/21 as the new 3Y benchmark. WI was last quoted at 3.445%-3.435% with no trades reported thus far. That aside, BNM will also release their 2017 Annual Report today. ·
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.410 - 7 5-yr 3.545 - 4 7-yr 3.830 - 50 10-yr 3.955 +1.0 85 15-yr 4.430 +1.0 71 20-yr 4.550 - 3 30-yr 4.820 - 0 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.753 0.2 3-yr 3.795 0.5 5-yr 3.855 0.2 7-yr 3.965 0.5 10-yr 4.090 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

 

****************************************************************************************************************************************************************************************************************************************************************************************************************

DISCLAIMER:

This message may contain confidential and privileged information for its intended recipient(s) only. If you are not an intended recipient, you are hereby notified that any review, dissemination, and distribution, printing or copying of this message or any part thereof is strictly prohibited. Please delete the entire message and inform the sender of the error. Any opinions, conclusions and other information in this message that are unrelated to official business of AmBank Group are those of the individual sender and shall be understood as neither explicitly given nor endorsed by AmBank Group.

****************************************************************************************************************************************************************************************************************************************************************************************************************