· Overnight, US Fed kept the rates unchanged as widely expected and signaled it wa

Today’s trade recap by our trading desk:-
·         Overnight, US Fed kept the rates unchanged as widely expected and signaled it was still on track for two more interest rate hikes this year. This increase the expectations of a hike in June to 93% from 67% prior to the Fed meeting. UST 10y rose 3bps to 2.32 while USD surged against most of the major currencies. In local bond market, buying flows still seems strong in the market despite prices shifted left slightly with yields rising 1-2bps in the morning trading session as Ringgit opened weaker. Yields closed largely unchanged as there was some buying flows coming into the market in late evening.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.230 0.0 7 5-yr 3.590 0.0 20 7-yr 3.860 +0.5 12 10-yr 3.970 +0.5 311 15-yr 4.370 0.0 276 20-yr 4.660 0.0 183 30-yr 4.780 0.0 8 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.525 -1.5 3-yr 3.660 2.0 5-yr 3.755 1.0 7-yr 3.860 -1.0 10-yr 4.020 0.0 Source: Bloomberg, AmBank