FW: Fixed Income Daily Pulse - 16 May 2018

 

 

Good Evening ,
Today’s trade recap by our trading desk:-
On the back of revision of retail sales number higher and suspecting short positions being stopped out, UST 10y rose past 3.03% resistance level overnight to a high of 3.08%, levels last seen back in 2011. This resulted in a bout of bearishness in the local space when market opened this morning. Bond yields 1-3bps across the curve with trades mainly focused on the MGS space. Nevertheless, buying interest on certain stocks remained strong as yields were attractive. Traded volume in the secondary market remains healthy with over RM4.0bio in MYR bonds traded today while past 2 days saw over RM10bio traded. On top of that, the new government today announced that Malaysia new GST rate will be 0% effective 1st June 2018.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.710 +1.0 - 5-yr 3.870 +3.0 - 7-yr 4.010 +3.0 210 10-yr 4.180 +1.0 271 15-yr 4.615 +1.5 643 20-yr 4.870 +5.0 30 30-yr 4.935 - 10 Source: BondStream, AmBank *Closing levels are based on traders’ quotes.	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.750 0.0 3-yr 3.850 0.5 5-yr 3.940 2.0 7-yr 4.040 1.5 10-yr 4.170 2.0 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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