FW: Fixed Income Daily Pulse - 9 January 2018

 

 

Good Evening,
Today’s trade recap by our trading desk:-
·         USD strengthened overnight in tandem with rising UST yields towards 2.50% levels. As a result, MYR weakened to 4.01 levels today after seeing 3.9850 low yesterday. The bond market which continued its buying momentum during the morning session was under selling pressure in the afternoon led by benchmark stocks being hit on both MGS and GII curve. Yields ended the day 1-1.5bps higher across apart from the 10y which rose by 4bps. This selling is mostly profit taking on soft volume after a strong rally over the past 2 weeks.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.355 - 101 5-yr 3.530 +1.5 74 7-yr 3.830 -0.5 101 10-yr 3.900 +4.0 56 15-yr 4.385 +1.0 10 20-yr 4.590 +1.0 2 30-yr 4.865 +1.5 3 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.640 0.0 3-yr 3.758 0.5 5-yr 3.835 0.7 7-yr 3.940 0.5 10-yr 4.060 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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