FW: Fixed Income Daily Pulse - 7 March 2018

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         As talks of trade war develops further, Gary Cohn resigned as Trump’s economic adviser amid dispute over his tariff plans. UST oscillated within 2.82-88% range overnight as markets await further developments. On the local front, BNM’s MPC decided to keep OPR rates on hold during the meeting earlier. In the statement released, the tone was rather neutral, mainly highlighting inflation to trend lower this year while growth would remain strong; while also noting that the hike during the previous meeting was a normalization of policy, rather than a tightening move. Buying momentum in the market was further amplified once the MPC event risk was out of the way. Heavy flows were seen on benchmarks at the belly of both MGS and GII curve while the upcoming 10y MGS replacement M628 also saw strong demand. Today’s price action saw yields easing 2-5bps from the belly to the back end of the curve while MYR traded sideways as compared to yesterday’s levels.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.405 -0.5 - 5-yr 3.585 - 269 7-yr 3.865 -2.0 355 10-yr 3.995 -1.5 485 15-yr 4.420 -4.0 231 20-yr 4.565 -5.5 21 30-yr 4.780 -2.0 10 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.745 -1.0 3-yr 3.810 -2.1 5-yr 3.890 -2.0 7-yr 4.010 -1.0 10-yr 4.140 -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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