· The market today was dominated by buying spree in the GII space after news of GIIs 7Y a

Today’s trade recap by our trading desk:-
·         The market today was dominated by buying spree in the GII space after news of GIIs 7Y and 10Y benchmarks being included into JP Morgan’s GBI-EM Index beginning 31st Oct this year. This sent GII prices flying as foreign demand in the GII space suddenly went sky rocket, sending yields on the GII curve down by 5-12bps for the day. Spread of GII against MGS also narrowed to 4-5bps above on the belly as the MGS curve was rather muted today. The 7Y and 10Y GII saw almost RM3bio traded on that two stocks alone. This spree would soon spread into other GII stocks as investors look for value.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 2.875 -3.0 90 5-yr 3.195 -1.0 370 7-yr 3.435 +1.5 504 10-yr 3.515 0.0 80 15-yr 3.865 +0.5 120 20-yr 4.155 -0.5 40 30-yr 4.460 -2.5 10 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.315 -1.0 3-yr 3.325 -0.5 5-yr 3.425 -1.0 7-yr 3.550 -2.0 10-yr 3.720 -1.0 Source: Bloomberg, AmBank
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