· On the back of a bad retail sales data in the US last Friday, yields continue to head south while

Today’s trade recap by our trading desk:-
·         On the back of a bad retail sales data in the US last Friday, yields continue to head south while the buying spree in the local bond market continued today. As benchmark yields moved downwards, the off-the-runs became cheap and attracted attention of investors, especially the previous 10Y MGS benchmark M925 which saw c. RM750mio traded today. Despite the strong buying flows on bonds from the belly all the way towards the longer ends, prices rose smoothly today as profit takers appeared to inject liquidity in the market. Yield curve ended the day 1-1.5bps lower with decent traded volume as the MYR pared its losses on Friday and closed the day around 4.0000 level; in tandem with a rally in oil prices as well.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 2.915 -0.5 20 5-yr 3.185 -1.0 10 7-yr 3.390 -0.5 628 10-yr 3.495 -1.0 235 15-yr 3.860 -2.5 637 20-yr 4.190 +1.5 140 30-yr 4.480 -0.5 0 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.310 -1.0 3-yr 3.320 -1.5 5-yr 3.410 -3.0 7-yr 3.545 -1.5 10-yr 3.720 -1.0 Source: Bloomberg, AmBank
Local News:
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