FW: Fixed Income Daily Pulse - 26 September 2017

 

Good Evening,
Today’s trade recap by our trading desk:-
·         Safe haven assets rallied overnight after North Korea’s foreign minister condemned Trump’s remarks over the weekend and said his words are a declaration of war. The risk off sentiments saw MYR weakened today but found resistance at 4.2100 levels. The local bond space on the other hand saw prices firmer in tandem with global yields easing with trades most focused on the MGS benchmarks at the belly as traded volume picked up. The reopening auction for 15Y GII 8/33 was also announced today. There will be RM3.0bio for auction and another RM1.0 bio privately placed. WI was last quoted wide 4.68-45% level with nothing done.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.370 -0.5 39 5-yr 3.540 -1.0 0 7-yr 3.780 -2.5 220 10-yr 3.865 -3.5 - 15-yr 4.310 - 20 20-yr 4.520 - - 30-yr 4.800 +0.5 61 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.500 0.0 3-yr 3.600 1.0 5-yr 3.720 0.5 7-yr 3.830 0.0 10-yr 3.970 0.0 Source: Bloomberg, AmBank