The Brexit outcome has now started to sink in, global yields continue to head southwards due to the uncertainties looming over how would Brexit affect the global economy.

Good evening!
Today’s trade recap by our trading desk:-
·         The Brexit outcome has now started to sink in, global yields continue to head southwards due to the uncertainties looming over how would Brexit affect the global economy. GBP continued to be sold down to 1.3250 levels against USD, even lower than post Brexit vote last Friday. In the local bond space, there were buying flows amongst the benchmarks bonds on the belly today, especially in the GIIs. Towards the end of the day, as Gilts dropped < 1% for the first time on record and UST rallying by another 6-7 bps, there was some buying in the local govvies as well. Hearing foreign real money flows behind this. The yield curve ended the day 4-5bps lower. The 30Y MGS reopening auction was announced today as well with an issuance size of RM2.5bio. WI was last quoted wide at 4.79-60 with nothing done so far.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.205 -1.0 21 5-yr 3.430 -0.5 60 7-yr 3.735 -5.0 155 10-yr 3.860 -4.0 265 15-yr 4.185 -5.0 - 20-yr 4.295 -2.0 - 30-yr 4.770 +3.5 - Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.555 -1.0 3-yr 3.550 -4.0 5-yr 3.630 -6.0 7-yr 3.760 -4.5 10-yr 3.930 -5.0 Source: Bloomberg, AmBank
Local News:
·         None.