FW: Fixed Income Daily Pulse - 28 February 2018

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         Overnight global markets saw Jerome Powell’s first congressional testimony as new Fed Chair; among many things, reiterating his predecessor’s plans to stick with gradual path for interest rate hikes. While initial market reaction was rather muted, UST yields largely rose after market deemed his testimony hawkish with UST 10Y ticking up to high of 2.912%. Despite rising global yields, trading activities of local bonds were rather decent with prices largely quoted firmer from the belly to the long-end of the curve. Yields eased 1-3bps from the belly towards the back end with renewed market interest in 7Y MGS 9/24 throughout the day. On the data front, Malaysia’s January CPI was released today at 2.7%; slightly below market expectations (F: 2.8%; P: 3.5%).
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.405 +1.5 66 5-yr 3.640 +2.5 170 7-yr 3.955 -1.5 268 10-yr 4.030 -0.5 306 15-yr 4.460 -1.0 154 20-yr 4.625 -1.0 53 30-yr 4.835 -3.0 20 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.760 -0.5 3-yr 3.835 0.0 5-yr 3.918 -0.5 7-yr 4.050 1.0 10-yr 4.170 4.8 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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