· After talks of ECB tapering its bond purchases overnight, UST yields rose by 6bps t

Good Evening,
Today’s trade recap by our trading desk:-
·         After talks of ECB tapering its bond purchases overnight, UST yields rose by 6bps to 1.69% before retracing by 2bps after ECB denied it. Subsequently, local govvies followed with prices softer during market opening and saw slight selling pressure in the morning on thin liquidity. The curve rose 3-4bps before seeing support as market started to buy on dips in the afternoon. MGS curve closed the day 1.5-3.5 bps higher. For the upcoming 3Y GII auction tomorrow, WI was done at 3.24-22 level today; with about RM80mio traded.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 2.860 -0.5 3 5-yr 3.260 +3.5 264 7-yr 3.430 +1.5 93 10-yr 3.570 +2.5 487 15-yr 3.925 +1.5 31 20-yr 4.115 0.0 152 30-yr 4.465 +2.0 51 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.305 -1.5 3-yr 3.365 +0.5 5-yr 3.485 +1.5 7-yr 3.625 +0.0 10-yr 3.850 +0.0 Source: Bloomberg, AmBank
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