Fixed Income View: Fitch Raises Outlook to A-/stable_20150701

Fixed income view: MGS curve to bull-flatten; take profit from rally

·         An unexpectedly positive move by Fitch upgrading Malaysia's outlook from negative to stable, while reaffirming rating at A-.

·         The MGS curve to bull-flatten with the 10y MGS potentially rallying by another 5-10bps from yesterday's close, in our view.

·         We recommend taking profit from the rally.