FW: Fixed Income Daily Pulse - 30 November 2017

 

 

Good Morning,
Today’s trade recap by our trading desk:-
·         Overnight headlines were dominated by a strong US GDP number at 3.3% vs 3.0% expected. The UST 10y yield resultantly shot up to 2.390% level. On to Asian space, Bank of Korea hiked their benchmark rates today by 25bps. However, it was deemed by market to be a rather dovish hike and much expected, resulting in their bond market rallying right after. After seeing fresh YTD lows yesterday, USDMYR traded sideways today below 4.0900 level. Bond space was relatively quiet until the afternoon session where strong demand was seen on MGS benchmarks 10y-20y. The 10y MGS was taken to a low of 3.850% today on the back of thin liquidity, with the 7Y MGS yield inverted at 3.900%. The local market will be taking a long weekend break on the back of Awal Muharram public holiday.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.405 -1.5 1 5-yr 3.625 -2.5 - 7-yr 3.925 -1.0 1 10-yr 3.880 -7.5 99 15-yr 4.440 -3.5 7 20-yr 4.605 -1.5 12 30-yr 4.900 - 4 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.640 0.0 3-yr 3.725 -1.2 5-yr 3.815 0.5 7-yr 3.930 -1.2 10-yr 4.055 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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