FW: Fixed Income Daily Pulse - 23 October 2017

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         On the back of renewed optimism for a tax reform, UST yields rose towards 2.40% and USD rallied. The strength of USD was also aided by Abe retaining his coalition’s two-thirds majority during yesterday’s election, on the back of his pro easing policies. These developments sparked a selloff in the local bond market today, with yields rising sharply by 5-8bps across the curve while MYR weakens to 4.2350 levels as well. The sharp rising in yields was also a result of selling pressure in the market with paper thin liquidity.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.480 +6.5 54 5-yr 3.695 +8.0 32 7-yr 3.965 +5.0 15 10-yr 3.985 +6.5 20 15-yr 4.400 +5.5 - 20-yr 4.580 +3.0 1 30-yr 4.845 +2.5 - Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.520 1.0 3-yr 3.645 0.5 5-yr 3.790 2.7 7-yr 3.920 6.0 10-yr 4.040 3.0 Source: Bloomberg, AmBank

 

Best regards,

Fixed Income Research & Strategy

AmBank Research, AmBank (M) Berhad

+603 2036 2292 (DL) +03 2031 7218 (Fax)

Level 15, Bangunan AmBank Group, 55 Jalan Raja Chulan, 50200 Kuala Lumpur

 

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