FW: FI Research -Re-opening of 10-year MGS

 

 

Dear Readers,   Highlights of the report as follow:-

·         The re-opening of the 10-year MGS maturing 16 November 2027 with a size of RM2.0bil recorded a moderate bid-to-cover (BTC) ratio of 1.530 times. This BTC ratio was lowest since the 10-year MGS re-opening on 12th November 2015 of 1.503%. ·         For the past two weeks, the 10Y MGS/UST spread has narrowed as US Treasury yields have picked up following the Senate’s decision to pass the tax reform, steady core-PCE at 1.4%y/y in October as well as reports which revealed that Michael Flynn had pleaded guilty. Meanwhile, demand for MGS has been supported by the stronger ringgit which has strengthened to its highest since September 2016.    ·         The next tender to watch is the new issuance of the 15.5-year MGII in December 2017. It will be the last tender result for the year. The last issuance of such papers was the 15.5-year MGII ‘09/30 in March 2015 which reported a 3.433 times BTC ratio..

 

 

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

 

 

 

****************************************************************************************************************************************************************************************************************************************************************************************************************

DISCLAIMER:

This message may contain confidential and privileged information for its intended recipient(s) only. If you are not an intended recipient, you are hereby notified that any review, dissemination, and distribution, printing or copying of this message or any part thereof is strictly prohibited. Please delete the entire message and inform the sender of the error. Any opinions, conclusions and other information in this message that are unrelated to official business of AmBank Group are those of the individual sender and shall be understood as neither explicitly given nor endorsed by AmBank Group.

****************************************************************************************************************************************************************************************************************************************************************************************************************