FW: Fixed Income Daily Pulse - 31 July 2018

 

 

Good Evening ,
Today’s trade recap by our trading desk:-
Recent hype into BOJ’s meeting decision this morning was that they were going to start tapering the bond buying program in Japan. However, BOJ’s statement didn’t meet market’s expectation; stating that they will maintain the bond buying program and maintain current interest rates for the time being. JGB yields resultantly eased by 5bps and sparked further rally in the local bond market. Buying interest was seen across benchmarks in mainly the MGS space, with firmer prices driving yields down by 1-3bps.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.555 -1.5 42 5-yr 3.755 -0.5 120 7-yr 3.960 -2.0 471 10-yr 4.075 -1.5 274 15-yr 4.525 -3.5 362 20-yr 4.790 -1.0 46 30-yr 4.915 - 71 Source: BondStream, AmBank *Closing levels are based on traders’ quotes.	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.705 - 3-yr 3.745 - 5-yr 3.840 - 7-yr 3.975 -0.5 10-yr 4.170 -0.6 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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