FW: Fixed Income Daily Pulse - 31 October 2017

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         Overnight news was dominated by the report of initially proposed US tax reforms may only be implemented in phases over the next few years and not a one off event. This saw UST rallying and the bulls in US equities eased off coupled with USD weakening across as well. Apart from that, there were reports of the new Fed Chair to be announced this Thursday after the FOMC meeting this week. Onto the local front, buying flows on the MGS 10y dominated the market today, driving yields down by 6-9bps on the front end of the curve up to 10y. The strong flow in a market with thin liquidity drove the 10y yield lower than 7y; which resulted in that part of curve being inverted. Trading activity picked up today but volume remained rather subdued; expect it to improve over the week.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.460 -6.0 157 5-yr 3.680 -6.0 11 7-yr 3.940 -7.0 2 10-yr 3.935 -9.0 8 15-yr 4.475 - 21 20-yr 4.645 - - 30-yr 4.980 -2.0 50 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.525 0.0 3-yr 3.645 -2.3 5-yr 3.770 -3.3 7-yr 3.890 -5.9 10-yr 4.030 -4.0 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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