Local bond yields continued to drop further today by 3-5bps as buying spree in the market continue today.

Good evening!
Today’s trade recap by our trading desk:-
·         Local bond yields continued to drop further today by 3-5bps as buying spree in the market continue today. Foreign funds are driving up the market as real money are flowing from EU into Asian space on the back of the Brexit referendum. 30Y MGS auction closed with a strong BTC of 2.369x and averaging 4.613%. Strong interest from local real money accounts and some foreign players looking to catch the high yielding stock. Post auction, the bond was well bided slightly below auction average. On the back of strong foreign bond buying, MYR strengthen today to close at 4.0400 levels.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.165 -1.0 47 5-yr 3.390 -2.5 140 7-yr 3.615 -5.0 665 10-yr 3.735 -4.5 413 15-yr 4.080 -5.5 164 20-yr 4.270 -2.5 205 30-yr 4.605 -3.5 652 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.515 0.5 3-yr 3.510 0.0 5-yr 3.580 -0.5 7-yr 3.695 -1.5 10-yr 3.860 -1.0 Source: Bloomberg, AmBank
Local News:
·         None.