FW: Fixed Income Daily Pulse - 07 May 2018

 

Good Morning,
Monday’s trade recap by our trading desk:-
Late Friday night, NFP data was released. It came in lower than the expected +193k at +164k. Despite the low wage number, unemployment rate decreased to 3.9%, below the expected 4.0% level. UST yields initially eased to a low of 2.91% levels before rebounding to 2.95% levels as market digested these data; with anticipation of further rate hikes as unemployment rate drops. Onto the local space, the week started off mutedly with market players fully focused on developments for the upcoming elections. With many on the sidelines, prices were generally softer across the curve with yields rising 1-2bps. Not much trading activity in the secondary market apart from a buying flow on the ex-15y benchmark M433 which saw over RM300mio traded yesterday. Market is expected to remain muted on Tuesday as many will be heading out of town.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.680 +1.5 2 5-yr 3.800 - - 7-yr 3.950 +2.0 - 10-yr 4.135 +2.0 24 15-yr 4.635 +0.5 282 20-yr 4.760 - 12 30-yr 4.935 - - Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.755 0.0 3-yr 3.830 1.0 5-yr 3.905 0.0 7-yr 4.020 0.5 10-yr 4.170 0.0 Source: Bloomberg, AmBank

 

Best regards,

Fixed Income Research & Strategy

AmBank Research, AmBank (M) Berhad

+603 2036 2255 (DL) +03 2031 7218 (Fax)

Level 15, Bangunan AmBank Group, 55 Jalan Raja Chulan, 50200 Kuala Lumpur

 

****************************************************************************************************************************************************************************************************************************************************************************************************************

DISCLAIMER:

This message may contain confidential and privileged information for its intended recipient(s) only. If you are not an intended recipient, you are hereby notified that any review, dissemination, and distribution, printing or copying of this message or any part thereof is strictly prohibited. Please delete the entire message and inform the sender of the error. Any opinions, conclusions and other information in this message that are unrelated to official business of AmBank Group are those of the individual sender and shall be understood as neither explicitly given nor endorsed by AmBank Group.

****************************************************************************************************************************************************************************************************************************************************************************************************************