Tuesday, May 8, 2018

FW: Fixed Income Daily Pulse - 07 May 2018

 

 

Good Morning,

 

Monday’s trade recap by our trading desk:-

 

Late Friday night, NFP data was released. It came in lower than the expected +193k at +164k. Despite the low

wage number, unemployment rate decreased to 3.9%, below the expected 4.0% level. UST yields initially eased to a low of 2.91% levels before rebounding to 2.95% levels as market digested these data; with anticipation of further rate hikes as unemployment rate drops. Onto the local space, the week started off mutedly with market players fully focused on developments for the upcoming elections. With many on the sidelines, prices were generally softer across the curve with yields rising 1-2bps. Not much trading activity in the secondary market apart from a buying flow on the ex-15y benchmark M433 which saw over RM300mio traded yesterday. Market is expected to remain muted on Tuesday as many will be heading out of town.

Malaysia Government Bonds Benchmark Issues

MGS

Closing Level (%)

Change (bp)

Volume (RM m)

3-yr

3.680

+1.5

2

5-yr

3.800

-

-

7-yr

3.950

+2.0

-

10-yr

4.135

+2.0

24

15-yr

4.635

+0.5

282

20-yr

4.760

-

12

30-yr

4.935

-

-

Source: BondStream, AmBank

Interest Rate Swap Closing Rates

IRS

Closing Yield (%)

Change (bp)

1-yr

3.755

0.0

3-yr

3.830

1.0

5-yr

3.905

0.0

7-yr

4.020

0.5

10-yr

4.170

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

 

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