FW: Fixed Income Daily Pulse - 04 December 2017

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         A pretty quiet start to the final month of the year while UST yields gapped upwards to 2.41% levels when Asian markets opened this morning on the back of news of that the Senate has gathered enough votes to pass Trump’s new tax bill. Local bond space was rather muted while buying interest on the MGS benchmarks remains strong. Yields ended the day down 2.5bps across as the 7y 10y spread normalized. The 10y MGS reopening auction was announced today with RM2.0bio up for tender and another RM0.5bio privately placed. WI was quoted wide 3.93-85% as we expect strong demand going into this auction; especially from the foreign accounts.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.405 - 22 5-yr 3.600 -2.5 61 7-yr 3.880 -4.5 110 10-yr 3.900 +2.0 23 15-yr 4.420 -2.0 3 20-yr 4.590 -1.5 74 30-yr 4.880 -2.0 7 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.635 -0.5 3-yr 3.735 0.6 5-yr 3.825 1.0 7-yr 3.925 -0.5 10-yr 4.060 0.5 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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