Fixed Income Daily Pulse, 01 June 2016

Good evening!
Today’s trade recap by our trading desk:-
·         A less action packed day as compared to yesterday, benchmarks were traded in 10-20 cents ranges up and down as buying flows were met by slight selling pressure. Prices were firmer slightly, off yesterday’s low as the yield was within 1-2bps range. Most of the stocks traded today were focused on the belly of MGS curve, with the 1121 seeing c.RM690mio traded. MYR weakened further today to close at 4.1450 levels as foreign continue to buy USDMYR in an illiquid market, resulting in prices gapping higher quickly.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.275 +2.5 136 5-yr 3.600 -2.0 889 7-yr 3.840 -1.5 573 10-yr 3.935 -1.0 183 15-yr 4.230 +1.0 13 20-yr 4.330 -2.0 0 30-yr 4.725 +2.0 40 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.630 -1.0 3-yr 3.650 0.5 5-yr 3.770 -0.5 7-yr 3.920 -0.5 10-yr 4.100 1.0 Source: Bloomberg, AmBank
Local News:
·         Nikkei Malaysia Manufacturing Purchasing Managers' Index (PMI) is at 47.2 in May. Production and new orders decreased in May, the sharpest rate in over three-and-a-half years. The main driver behind the fall in total new orders was domestic demand, as new export orders rose for the fourth consecutive month.