Fixed Income Daily Pulse, 27 Apr 2016

Today’s trade recap by our trading desk:-
·         There was the announcement of Datuk Muhammad Ibrahim as the new BNM governor today. Market reacted positively with the news as some losses from yesterday were pared while MYR strengthen to 3.91 levels today. Traded volume during the day was relatively thin apart from the 7Y GII as traders remained on the sideline in view of the upcoming event risk of FOMC and BOJ. With the 7Y MGS auction tomorrow, WI was last quoted at 3.82-78. Saw mixed reception as sellers were met with buyers in size on WI.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.270 -1.0 99 5-yr 3.465 -1.0 18 7-yr 3.820 -1.0 282 10-yr 3.885 +2.5 110 15-yr 4.185 +0.0 5 20-yr 4.315 +0.0 30 30-yr 4.675 +0.0 10 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.605 -0.5 3-yr 3.585 -2.0 5-yr 3.735 -1.5 7-yr 3.875 -0.5 10-yr 4.050 -1.0 Source: Bloomberg, AmBank
Local News:
·         None.