FW: CIMB Market Musings - 10 May 2018 - Peaceful Shift for a Positive Future

 

 

Summary

• A peaceful transition of power in Malaysia along with still strong financial market and government administrative structure would be positive for the long term prospects of Ringgit and local bonds.
• Ringgit will likely see a short term knee-jerk reaction to the uncertainty induced by the unprecedented results which ended the 61 year reign of the current government. This is likely to drive USDMYR towards 4.000 likely meeting with resistance at 4.0300.
• We are eyeing support for 10y MGS at ascending big figure yield levels for now; eyeing 4.20% short term resistance, then onwards to test 4.30% breaking of which will likely see 4.40% in the medium to longer term. The higher yields however represent a good buying opportunity.

CIMB Treasury & Markets Research-Fixed Income
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