FW: Fixed Income Daily Pulse - 19 December 2017

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         Overnight headlines focused on US Tax Reform as both House and Senate are expected to approve the legislation along party lines this week. This in effect kicked off a risk-on sentiment in global markets which saw UST 10Y ticked higher to 2.40%. Despite optimism in the US, the greenback weakened against MYR today, trading at higher range of 4.0700 throughout the day. Local bond market reaction however remained muted as prices were quoted wide with paper thin liquidity while market continued to drift sideways towards year end. Yields remained largely unchanged across curve apart from 10Y MGS which was last traded at 3.960% in the afternoon.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.375 - 10 5-yr 3.640 - 33 7-yr 3.910 - 2 10-yr 3.965 -0.5 60 15-yr 4.435 - - 20-yr 4.645 - - 30-yr 4.900 - 21 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.635 0.0 3-yr 3.735 -0.7 5-yr 3.815 0.0 7-yr 3.935 -0.7 10-yr 4.070 0.0 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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