Fixed Income Daily Pulse, 04 May 2016

Today’s trade recap by our trading desk:-
·         A risk off sentiment dominated the market today as MYR weakened by 600 pips to 3.99 levels in tandem with the USD strength across the board and a drop in oil prices overnight. Local bond market subsequently saw softer prices but nothing much has been traded so far apart from the 7Y MGS which saw some selling pressure by both local and foreign counterparts. The 7Y MGS saw c.RM650mio traded while other benchmarks done were all <RM100mio. Yield curve ended the day higher by 1.5-5bps. For the upcoming 15Y GII auction tomorrow, WI was last quoted at 4.50-30 with nothing done.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.295 - 45 5-yr 3.465 +1.5 11 7-yr 3.825 +5.0 726 10-yr 3.905 +3.5 92 15-yr 4.185 +1.5 10 20-yr 4.330 +1.5 - 30-yr 4.675 +2.0 40 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.595 0.0 3-yr 3.570 0.0 5-yr 3.715 1.0 7-yr 3.865 0.5 10-yr 4.030 1.5 Source: Bloomberg, AmBank
Local News:
·         None.