After OPEC’s failure to cut output on oil production, oil prices dropped almost 4% overnight while both BOJ and RBA kept rates and monetary policy unchanged today. MYR bond space saw mixed trades today as buying flows were met by local traders looking to take profit and de-risk going into this week’s even

Good Evening,
Today’s trade recap by our trading desk:-
·         After OPEC’s failure to cut output on oil production, oil prices dropped almost 4% overnight while both BOJ and RBA kept rates and monetary policy unchanged today. MYR bond space saw mixed trades today as buying flows were met by local traders looking to take profit and de-risk going into this week’s event risk. MGS curve traded range bound and eased by 1-3bps on the front end while the back end was up slightly by 1-2bps. After a strong Chinese PMI data, Asian currencies gained strength which saw MYR strengthening to 4.1800 levels after opening higher this morning at 4.2000.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.010 -3.0 122 5-yr 3.330 0.0 15 7-yr 3.515 -3.5 72 10-yr 3.630 -1.0 80 15-yr 4.060 +1.0 133 20-yr 4.320 -1.5 439 30-yr 4.600 +2.0 40 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.335 -1.0 3-yr 3.400 -0.5 5-yr 3.530 +0.5 7-yr 3.700 +0.5 10-yr 3.930 +0.0 Source: Bloomberg, AmBank
Local News:
Nikkei Malaysia Manufacturing Purchasing Managers' Index fell to 47.2 in October – the lowest since June 2016 and marked the 19 consecutive months in the contraction territory. New orders which declined at the sharpest rate since November 2015 together with the fall in output contributed to the weak reading of manufacturing PMI in October.