FW: Fixed Income Daily Pulse - 10 August 2017

 

Good Evening,
Today’s trade recap by our trading desk:-
·         South Korea & Japan has both warned North Korea against their plans of firing missiles towards Guam. Overnight market saw a flight to safe haven as UST 10y eased to a low of 2.21% in tandem with strengthening safe haven currencies. This also resulted in MYR weakening to 4.2940 levels today. In the local bond space however, yields were largely untouched although there was slightly buying in the front end of the curve after the announcement of a 3y MGS new issuance. The issue size at RM 3.5bio is lower than expected, with demand expected to be strong into this auction. WI was quoted 3.45-40% with nothing done.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.285 - - 5-yr 3.640 -2.5 3 7-yr 3.910 - 16 10-yr 3.990 - 12 15-yr 4.405 - 0 20-yr 4.565 - 12 30-yr 4.785 - - Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.485 -0.5 3-yr 3.635 -0.5 5-yr 3.745 -1.5 7-yr 3.860 0.0 10-yr 4.000 0.0 Source: Bloomberg, AmBank