FW: Fixed Income Daily Pulse - 30 October 2017

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         Yields eased late Friday evening after reports of Trump in favour of a more dovish Jerome Powell to chair the Fed emerged, overshadowing a strong Q3 US GDP number. This also halted the USD’s rally and saw other currencies strengthened. Hence, the week started off on a positive noted for the MYR market as local bonds were seen to be well bided on the front end of the curve up to 10Y in maturities while MYR strengthened slightly to trade at 4.2375 levels. However, trading activity remained subdued as market players are gearing up for an eventful week with upcoming FOMC and BOE rates decision in focus, while the decision for the next Fed Chairperson is expected to be revealed during the week as well.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.520 -1.5 30 5-yr 3.740 -4.0 - 7-yr 4.010 -2.0 - 10-yr 4.025 -3.5 0 15-yr 4.475 - 50 20-yr 4.645 - 168 30-yr 5.000 - 3 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.525 0.0 3-yr 3.668 0.2 5-yr 3.803 0.3 7-yr 3.950 -2.3 10-yr 4.070 -1.0 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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