As the world waits to see what Donald Trump has to say during his 1st speech to Congress tomorrow morning, the market was rather subdued and traded on thin volume. Slight selling pressure was seen in the local govvies especially at the back end of the cu

Today’s trade recap by our trading desk:-
·         As the world waits to see what Donald Trump has to say during his 1st speech to Congress tomorrow morning, the market was rather subdued and traded on thin volume. Slight selling pressure was seen in the local govvies especially at the back end of the curve. This is in tandem with UST 10y rising 5bps overnight on the back of increased probability to 50% for a Fed hike during March’s FOMC meeting. Both MGS & GII curve rose 2.5-5bps across by the end of the day.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.350 +2.5 20 5-yr 3.735 +2.5 86 7-yr 3.930 +1.5 57 10-yr 4.070 +3.5 105 15-yr 4.475 +3.5 163 20-yr 4.645 +5.0 69 30-yr 4.710 +3.0 11 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.495 0.0 3-yr 3.630 0.0 5-yr 3.795 0.5 7-yr 3.905 0.5 10-yr 4.060 -0.5 Source: Bloomberg, AmBank