FW: Fixed Income Daily Pulse - 29 January 2018

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         The local bond market started the week in lackluster mode as most market participants took to the sidelines in this short trading week. Morning flows were rather tepid with trades focused on specific short-end stocks like MGS 3/19 and GII 5/18. Midday however saw some selling pressure on the belly of the curve after UST 10Y breaking 2.70%. Yields ticked up 2-3bps with trading activities focused on key benchmark stocks. We also note that there were some buying interest lately on MGS 6/28; which is due to replace MGS 11/27 as 10Y benchmark in May.   ·         Key risk event for the week falls on US FOMC January meeting this Thursday where the Fed is expected to keep rates unchanged. Unless the Fed surprises global markets this week, expect market activity to remain subdued for the remaining 2 trading days of the week.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.370 - - 5-yr 3.615 - 176 7-yr 3.955 +3.5 254 10-yr 3.945 +2.0 103 15-yr 4.410 +2.0 25 20-yr 4.630 +2.0 39 30-yr 4.900 - - Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.750 5.5 3-yr 3.815 0.0 5-yr 3.905 1.0 7-yr 4.010 1.5 10-yr 4.140 3.0 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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