FW: Fixed Income Daily Pulse - 18 January 2018

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         Selling pressure intensified today with yields rising throughout the tenor for both MGS and GII curves as market participants continue to further trim down their positions ahead of next week’s MPC meeting and tracking higher UST yields. Ringgit was seen trading range bound between 3.9550-3.9640 level. It was rather an eventful day in the Global Bond space today as few central banks concluded its monetary policy meeting. Bank of Canada raised the overnight rate by 25bps to 1.25% while Bank of Korea held the rates unchanged at 1.50%. All of which came in line with market expectations. Overnight, hawkish comments by Fed member Kaplan further spurred risk-on sentiments in the market; resulting in 10Y UST gapping up to 2.60% during the day.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.320 - 60 5-yr 3.550 +1.0 1 7-yr 3.890 +3.0 12 10-yr 3.910 +3.0 51 15-yr 4.390 +0.5 1 20-yr 4.600 +0.5 10 30-yr 4.870 +0.5 4 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.645 0.5 3-yr 3.780 1.5 5-yr 3.845 1.5 7-yr 3.950 1.0 10-yr 4.070 1.0 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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