· In the overnight market, UST slumped on the back of ADP employment data coming out much higher than expected at 298k vs 190k exp. The 10Y yield rose to a high of 2.57% while USD strengthened as well, indicating an upside risk for Friday’

Today’s trade recap by our trading desk:-
·         In the overnight market, UST slumped on the back of ADP employment data coming out much higher than expected at 298k vs 190k exp. The 10Y yield rose to a high of 2.57% while USD strengthened as well, indicating an upside risk for Friday’s NFP. Subsequently, the local market continued its bearish trend, with the yield curve rising 2-5bps across today on the back of paper thin trades. Main focus in the market today was the new 5Y MGS auction with RM4.0bio issued. It closed with a rather weak BTC of 1.538x and averaging at 3.882%. post auction, the new stock saw minor selling pressure and ended the day around auction higher level of 3.905%. Expect market players to be on the sidelines until FOMC is over next week, with NFP due for release tomorrow as well.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.450 - 34 5-yr 3.905 +2.5 19 7-yr 4.155 +5.0 82 10-yr 4.205 +3.5 23 15-yr 4.605 +4.5 12 20-yr 4.750 +2.0 - 30-yr 4.865 +1.5 - Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.545 1.5 3-yr 3.693 0.7 5-yr 3.870 2.0 7-yr 3.965 0.0 10-yr 4.130 2.0 Source: Bloomberg, AmBank