Highlights of the week: • US Fed Reserve left two rate rises this year but six members now anticipate only one rate hike in 2016 compare to one member • Japan’s poor inflation dynamics suggest the need for further easing is strong • Brexit left financial markets unsettle • RM down against USD due to surge in cross SGD/MYR, downward pressure on commodities, narrowing 3-year MGS/2-year UST rate and selling on local equity market Local govvies yield curve edge higher on the short-end due to retreating oil prices and the increase in Brexit fears

 Highlights of the week:

·         US Fed Reserve left two rate rises this year but six members now anticipate only one rate hike in 2016 compare to one member 

·         Japan’s poor inflation dynamics suggest the need for further easing is strong

·         Brexit left financial markets unsettle

·         RM down against USD due to surge in cross SGD/MYR, downward pressure on commodities, narrowing 3-year MGS/2-year UST rate and selling on local equity market

Local govvies yield curve edge higher on the short-end due to retreating oil prices and the increase in Brexit fears