FW: Fixed Income Daily Pulse - 22 May 2018

 

Good Morning ,
Tuesday’s trade recap by our trading desk:-
After a period of bearishness, local bond market sentiments improved yesterday in tandem with the MYR as it halted its slide and recovered to 3.9675 levels on the back of general USD weakness. It was a general risk on sentiment in the global markets amid the de-escalation of trade tensions between Trump’s administration and China. While trading activity remained lackluster, there was a decent buying interest seen yesterday in the bond space, especially in the MGS spaces on the back of foreign buying flows. Yield curve resulted 2-5bps lower   yesterday. Market will be focused on the new 10y MGS auction today which will see M628 replacing M1127.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.725 -5.0 25 5-yr 3.870 -2.0 1 7-yr 4.035 -1.5 - 10-yr 4.195 -1.5 189 15-yr 4.605 -1.5 44 20-yr 4.900 - 3 30-yr 4.970 - - Source: BondStream, AmBank *Closing levels are based on traders’ quotes.	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.755 0.0 3-yr 3.835 -1.0 5-yr 3.930 -2.0 7-yr 4.023 -1.8 10-yr 4.160 -1.5 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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