Ringgit bonds continued its bullish trend today tracking stronger Ringgit and in line with other sovereign bonds movement which is hovering near record lows as market expecting additional stimulus measures taken from central banks due to Brexit

Good evening!
Today’s trade recap by our trading desk:-
·         Ringgit bonds continued its bullish trend today tracking stronger Ringgit and in line with other sovereign bonds movement which is hovering near record lows as market expecting additional stimulus measures taken from central banks due to Brexit. Malaysia trade data was released at 12pm Malaysia time. Exports year-on-year for the month of May surprisingly fell by 0.9%, compared with Bloomberg median forecast for a 2% gain. Imports (YoY) for the month of May rose 3.1% against market forecast of -2.9%.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.035 -9.0 752 5-yr 3.325 -3.0 274 7-yr 3.575 -2.5 356 10-yr 3.700 -4.0 531 15-yr 4.065 -1.5 364 20-yr 4.270 -1.0 10 30-yr 4.600 -1.0 390 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.505 -0.5 3-yr 3.505 -1.0 5-yr 3.565 -2.0 7-yr 3.695 -1.0 10-yr 3.860 0.0 Source: Bloomberg, AmBank
Local News:
·         Nikkei Malaysia Manufacturing Purchasing Managers' Index (PMI) fell to 47.1 in June versus 47.2 May. New export orders declined for the first time in five months, adding to the dip in total new orders while new orders from abroad contracted for the first time since the start of 2016 in June. ·         Malaysia's exports decreased unexpectedly in May at 0.9% y/y, while imports rose 3.1% y/y. Shipments of electrical and electronic products, which accounted for 36.3% of total exports, grew 3.2% y/y in May. On the other hand, the increased in imports was mainly attributed to capital goods and consumption goods. The visible trade surplus of the country shrank to MYR 3.3 billion in May.