FW: Fixed Income Daily Pulse - 24 August 2017

 

Good Evening,
Today’s trade recap by our trading desk:-
·         Buying momentum in the local bond space continued today, led by strong buying flows on the 10Y MGS as there was rumour of the stock being newly included into JP Morgan’s Global Bond EM Index. Yields eased 1.5-2.5bps across the curve. The momentum was also supported by a drop of 5bps in 10y UST yields overnight after Trump’s threat to shut down the government over border wall funding. Despite the strong buying flows, market is also vary of the speeches due by Draghi and Yellen at the Jackson Hole Symposium this coming weekend; which might indicate future monetary policies in the EU and US.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.360 -0.5 0 5-yr 3.565 -1.5 8 7-yr 3.875 -1.5 80 10-yr 3.950 -2.5 20 15-yr 4.330 -1 - 20-yr 4.545 -0.5 - 30-yr 4.740 -2 133 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.485 -1.3 3-yr 3.625 -1.0 5-yr 3.725 -1.2 7-yr 3.840 0.0 10-yr 3.975 0.0 Source: Bloomberg, AmBank