Fixed Income Daily Pulse, 13 Apr 2016

Today’s trade recap by our trading desk:-
·         Action packed day as the bond market continue to see buying flows in the morning, with particular strong interest on both the 7Y MGS/GII Benchmarks while the rest of the curve followed suit. Curve was down ~2bps initially before the day’s gains were given back on sporadic profit taking in the afternoon. Nevertheless, foreign counterparts still supporting the market with decent bids. The curve ended the day largely unchanged. MYR closed at about the same level as yesterday at 3.8700 after opening stronger at 3.8400 on the back of oil prices rising on reports that Russia and Saudi have agreed to cap oil production. There will be the 20Y MGS auction tomorrow, WI was last quoted at 4.25-10 level.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.235 - 183 5-yr 3.415 - 44 7-yr 3.705 +0.5 90 10-yr 3.760 +1.0 330 15-yr 4.080 +0.5 50 20-yr 4.250 -5.0 4 30-yr 4.565 -3.5 151 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.615 0.0 3-yr 3.615 0.0 5-yr 3.705 1.5 7-yr 3.855 0.5 10-yr 4.020 1.0 Source: Bloomberg, AmBank
Local News:
·         None.