FW: Fixed Income Daily Pulse - 29 August 2017

 

Good Evening,
Today’s trade recap by our trading desk:-
·         North Korea fired a missile across Japan and landed into the Pacific Ocean. Traders all scrambled for safe haven assets as JPY and Treasuries rallied; with the UST10y breaking 2.10% to settle at 2.09% levels when EU markets opened. In the local bond space, the 7Y GII reopening auction was held. It closed with a decently strong BTC of 2.104x, averaging 3.975%. Post auction, there was some buying demand in the 10Y stocks for both MGS and GII benchmarks as its yield came off by 3bps today while the rest of the curve was largely unchanged. Expect market to be trading cautiously over the next few days over the heightened geopolitical tensions.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.365 +0.5 23 5-yr 3.570 +1.0 - 7-yr 3.850 -1.0 100 10-yr 3.890 -3.0 1 15-yr 4.315 -1.0 - 20-yr 4.540 - 2 30-yr 4.740 - - Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.495 0.5 3-yr 3.625 0.0 5-yr 3.720 -0.5 7-yr 3.820 -1.0 10-yr 3.965 -0.5 Source: Bloomberg, AmBank