Fixed Income Daily Pulse, 23 May 2016

Today’s trade recap by our trading desk:-
·         Quiet start to the week with not much trading done in the market as MYR traded sideways at 4.0800 levels in the absence of market moving factors. Focus was on the new 10.5Y MGS auction this morning which saw a strong BTC of 2.193x, averaging at 3.900. The auction garnered strong demand from both local and foreign accounts. Post auction, the stock was traded near auction low around 3.88 level. Yield curve ended the day largely unchanged from last Friday’s closing.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.245 +1.0 10 5-yr 3.380 -2.0 443 7-yr 3.770 +0.5 60 10-yr 3.885 +4.0 1130 15-yr 4.205 +1.0 100 20-yr 4.315 - - 30-yr 4.675 0.0 10 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.595 0.0 3-yr 3.620 +2.0 5-yr 3.700 0.0 7-yr 3.855 0.0 10-yr 4.025 +0.5 Source: Bloomberg, AmBank
Local News:
·         None.