· The Fed kept rates unchanged overnight and there was no further indication of a potential rate hike

Good Evening,
Today’s trade recap by our trading desk:-
·         The Fed kept rates unchanged overnight and there was no further indication of a potential rate hike anytime soon. Subsequently, the local bond market took off the GIIs being taken up at first offer in the morning, seeing a 2-3bps shift down the GII curve at the belly, in tandem with a rally of 8bps in the UST 10y overnight. MGS space saw some selling on the short ends while there was demand on the belly towards the longer end where there was a 5bps rally on the offshore 5y NDIRS, driving fast money demand in the benchmarks. MYR strengthened to 4.0550 levels today on the back of USD weakness post FOMC.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 2.920 +3.5 62 5-yr 3.225 +0.5 203 7-yr 3.430 -3.0 283 10-yr 3.600 -2.0 42 15-yr 3.930 -2.5 91 20-yr 4.185 0 144 30-yr 4.515 -0.5 140 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.640 27.5 3-yr 3.365 -2.5 5-yr 3.475 -2.5 7-yr 3.620 -2.0 10-yr 3.790 -2.0 Source: Bloomberg, AmBank
Local News:
·        None.