It was a blood bath in the market today especially in the GII space after the announcement of reopening auction for 10Y GII on Thursday, with RM3.0bio to be issued. The GII c

Good Evening,
Today’s trade recap by our trading desk:-
·         It was a blood bath in the market today especially in the GII space after the announcement of reopening auction for 10Y GII on Thursday, with RM3.0bio to be issued. The GII curve rose by 5-9bps while MGS space rose 4-7 bps. There was selling pressure from both local and foreign traders on light volume across both curves. With USD strengthening across the board, MYR shot up to 4.1750 levels; highest since March earlier this year. As there was a spike in yields on thin liquidity, some traders were forced to cut with stop losses triggered. Expecting to sell-off to be short lived and market should stabilize soon.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 2.920 +4.0 0 5-yr 3.330 +5.5 371 7-yr 3.495 +4.5 73 10-yr 3.630 +5.0 2 15-yr 4.050 +6.5 136 20-yr 4.190 +3.0 0 30-yr 4.520 +3.0 5 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.360 +2.0 3-yr 3.405 +3.0 5-yr 3.560 +5.0 7-yr 3.720 +4.5 10-yr 3.920 +2.0 Source: Bloomberg, AmBank
Local News:
None.