Good Evening, | |||||||||||||||||||||||||||||||||||||||||||||||||||
Today’s trade recap by our trading desk:- | |||||||||||||||||||||||||||||||||||||||||||||||||||
· With no notable major events in the markets today, the local bond space started the morning quiet with very few trades done as the market focuses on BNM’s OPR rates decision and MPC statement in the afternoon. BNM kept OPR rates unchanged as expected and projects inflation to moderate next year. However, in the MPC statement, there was a change of tone which was deemed rather hawkish where BNM stated that they may consider reviewing the current degree of monetary accommodation. The market reacted aggressively with IRS curve gapping upwards by 7-10 bps while selling pressure was seen in the MGS space with bond yields jumping 7-10 bps across. Yield spike was much higher initially before some bargain hunters emerged who brought down the curve slight to close the day. MYR on the other hand strengthened by 150 pips towards 4.2120 levels on the back of the hawkish statements. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Malaysia Government Bonds Benchmark Issues
Source: BondStream, AmBank | Interest Rate Swap Closing Rates
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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