Fixed Income Daily Pulse, 26 Apr 2016

Good evening!
Today’s trade recap by our trading desk:-
·         With the news of 1MDB defaulting on their interest payment today, the local market opened much softer today as MYR weakened to 3.92 levels. Bond prices we much softer with bids far away as the market saw some selling pressure in the GII space, in particular the G723 which saw RM830mio traded. MGS space however was very quiet with a relatively thin traded volume but yield curve is up by 4.5-6bps. Selling pressure was mainly from local onshore traders while foreign counterparties are staying on the sidelines with focus on the FOMC meeting this week. A reopening auction of RM3bio on the 7Y MGS on Thursday was announced today, WI was last quoted 3.85-78 with nothing traded.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.280 +2.0 150 5-yr 3.475 +6.0 12 7-yr 3.830 +10.0 50 10-yr 3.860 +4.5 182 15-yr 4.185 +4.5 54 20-yr 4.315 +5.0 81 30-yr 4.675 +6.5 191 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.610 0.0 3-yr 3.605 1.5 5-yr 3.750 2.5 7-yr 3.880 1.5 10-yr 4.060 3.0 Source: Bloomberg, AmBank
Local News:
·         None.