FW: Fixed Income Daily Pulse - 23 May 2018

 

 

Good Evening ,
Today’s trade recap by our trading desk:-
General risk off sentiment developed in the global markets on the back of concerns over tensions between US and China as well as North Korea; coupled with political uncertainties in Italy. This resulted in a rally for haven trades and saw UST10y easing to 3.01% levels. In the local space, MYR resumed its downtrend today and weakened towards 3.9800 levels while bonds were softer slightly with muted trading activity. Focus was mainly on the 10Y MGS auction today, which saw M628 replacing M1127 as the new 10y benchmark. The auction closed with a decent BTC of 1.851x and averaged 4.202%. Nothing was traded post auction while yields inched up slightly by 1-1.5bps across the curve at the end of the day.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.740 +1.5 10 5-yr 3.870 - - 7-yr 4.035 - - 10-yr 4.210 +1.5 131 15-yr 4.615 +1.0 4 20-yr 4.900 - 41 30-yr 4.970 - 18 Source: BondStream, AmBank *Closing levels are based on traders’ quotes.	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.755 - 3-yr 3.835 - 5-yr 3.935 +0.5 7-yr 4.005 -1.8 10-yr 4.165 +0.5 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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