· Sentiments in the local bond market continue to be weak as global bond yields kept goin

Good Evening,
Today’s trade recap by our trading desk:-
·         Sentiments in the local bond market continue to be weak as global bond yields kept going higher on concern that ECB might wind down bond purchases before ending quantitative easing and strong US non-manufacturing data overnight. Govies yield closed relatively unchanged from yesterday’s level in thin trading volume.  We noticed some selling pressure on the off-the-run 2021s MGS papers with the yields rising 4bps. Today, BNM conducted the new-issue RM 3.5 Billion 3-year GII 4/20 auction which is going to replace the current 3-year benchmark GII 5/18. The tender garnered a bid-to-cover of 2.07x averaging at 3.226%. Post tender, there was not much movement with the stock being traded around tender average.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 2.860 - - 5-yr 3.260 0.0 28 7-yr 3.430 0.0 149 10-yr 3.570 0.0 43 15-yr 3.935 +1.0 58 20-yr 4.115 0.0 78 30-yr 4.465 - - Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.325 +2.0 3-yr 3.375 +1.0 5-yr 3.485 +0.0 7-yr 3.625 +0.0 10-yr 3.850 +0.0 Source: Bloomberg, AmBank
Local News:
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