MYR bond yields edged lower by 1-2bp with strong foreign buying interests on the short to belly of the curve due to market’s renewed appetite for risk.

Today’s trade recap by our trading desk:-
·         MYR bond yields edged lower by 1-2bp with strong foreign buying interests on the short to belly of the curve due to market’s renewed appetite for risk. Ringgit assets rebounded together with other risk assets as new opinion polls showed that the campaign for the UK to remain in the EU was regaining momentum. However, the buying was limited ahead of Yellen’s testimony tonight. USD/MYR closed almost 270 pips lower at 4.0360.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.215 -2.0 400 5-yr 3.455 -1.0 741 7-yr 3.750 -1.0 36 10-yr 3.880 -1.5 100 15-yr 4.195 -1.0 65 20-yr 4.295 - - 30-yr 4.705 - 5 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.570 -1.5 3-yr 3.590 -0.5 5-yr 3.685 0.0 7-yr 3.795 -3.0 10-yr 3.970 -3.0 Source: Bloomberg, AmBank
Local News:
·         The international reserves of Bank Negara Malaysia amounted to US$97.4 billion as at 15 June 2016. The reserves position is sufficient to finance 8.1 months of retained imports and is 1.2 times the short-term external debt.