Momentum in the local markets continues today in tandem with UST rallying 3bps overnight. MYR also continue to strengthen another 100pips.

Good Evening,
Today’s trade recap by our trading desk:-
·         Momentum in the local markets continues today in tandem with UST rallying 3bps overnight. MYR also continue to strengthen another 100pips. Although the market saw some profit taking activity in the afternoon session in view of FOMC rate decision due tonight, yields closed the day 2-3bps lower with strong bids seen across the curve. The first ever auction for 30Y GII was announced today with an issuance RM2.0bio and another RM0.5bio private placement. WI was seen bidding at 4.95% with nothing done so far. Expecting demand mostly from the local real money account and life insurance funds for this auction.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.230 0.0 174 5-yr 3.590 -3.0 7 7-yr 3.855 -1.5 175 10-yr 3.965 -2.5 182 15-yr 4.370 -2.0 417 20-yr 4.660 0.0 93 30-yr 4.780 -0.5 - Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.540 0.0 3-yr 3.640 -2.0 5-yr 3.745 -2.5 7-yr 3.870 0.5 10-yr 4.020 0.5 Source: Bloomberg, AmBank