· It was a total reversal in global markets overnight in US trading time after Donald Trump won the Presidential Elections by surprise. US st

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Today’s trade recap by our trading desk:-
·         It was a total reversal in global markets overnight in US trading time after Donald Trump won the Presidential Elections by surprise. US stock market rose and closed at near record highs while UST 10Y yields shot up 25bps past 2% for the first time since January this year to a high of 2.07%. The selloff in bond market and rally in the stock markets were driven by Trump’s intention to implement policies to drive inflation higher and having a stronger growth for the nation. This resulted in a bloodbath in global bond markets and the MYR space was not spared. Yields rose 10-14bps across the curve and stabilized at this level where buyers on dips were met by traders cutting losses. Liquidity was thin throughout the day as expected. The reopening of 7Y GII was announced today with WI last done at 3.78%. Market conditions right now is still very uncertain and in unchartered territories while many are still trying to analyze Trump’s Presidency and its effects to global economy.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.130 +10.0 22 5-yr 3.465 +10.5 143 7-yr 3.655 +10.5 33 10-yr 3.805 +13.0 210 15-yr 4.260 +14.0 218 20-yr 4.445 +11.0 448 30-yr 4.675 +5.0 110 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.350 +2.5 3-yr 3.455 +7.0 5-yr 3.625 +8.5 7-yr 3.745 +6.5 10-yr 3.940 +3.5 Source: Bloomberg, AmBank
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