FW: Fixed Income Daily Pulse - 14 December 2017

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         Overnight FOMC hiked US interest rate by 25bps to 1.25-50% as expected. However, Fed’s statement was deemed dovish, which led to UST easing 5-6bps. In the local bond space, market was relatively muted throughout the day. Focus was instead on the 15.5Y GII 6/33 new issue auction which saw RM2.0bio issued and a RM0.5bio Private Placement. The tender garnered a decent BTC of 1.775x with wide tender range of 4.790% high, 4.668% low, averaging at 4.724%. Post auction, the new issuance was traded 2bps above auction average. Traded volume in the secondary market remains thin while yields were largely unchanged for the day; apart from the 15y GII which closed +7bps higher from yesterday’s level. Key events to lookout for tonight are interest rate decisions by ECB and BOE. Both central banks are expected to keep rates unchanged.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.405 - - 5-yr 3.640 - 35 7-yr 3.910 - - 10-yr 3.980 +1.0 11 15-yr 4.450 +1.0 20 20-yr 4.645 - - 30-yr 4.900 - 3 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.645 0.0 3-yr 3.745 0.0 5-yr 3.830 -1.0 7-yr 3.945 -1.0 10-yr 4.080 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

 

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

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.

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