FW: Fixed Income Daily Pulse - 14 May 2018

 

Good Morning,
Monday’s trade recap by our trading desk:-
As market resume yesterday after a 3-day break, market started off with knee-jerk selling pressure on the Ringgit asset. Bond yields spiked 7-13 bps across the curve while Ringgit was traded 300 pips weaker at high 3.9850. However, the selloff across bonds and equities were both very short lived as market recovered quickly and turned positive. 10y MGS which spiked to a high of 4.26%, was last traded at 4.130% levels. With the new government acting fast in delivering its promises in its manifesto, elements of uncertainties seems to be fading away fast. The appointment of experienced advisers in the Council of Elders has also boost the investors’ confidence. Ringgit closed the yesterday unchanged at 3.9500.   Meanwhile, there was also a RM3.0B 7y GII reopening auction yesterday, which garnered strong BTC of 3.397 times ranging from 4.180-4.218%. The stock was last traded 2bps lower at 4.165%.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.670 -2.5 443 5-yr 3.825 +2.5 320 7-yr 3.940 -1.0 65 10-yr 4.130 -0.5 493 15-yr 4.600 -1.5 29 20-yr 4.780 - 41 30-yr 4.935 - 1 Source: BondStream, AmBank	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.750 0.0 3-yr 3.830 1.0 5-yr 3.918 -0.2 7-yr 4.000 -2.5 10-yr 4.120 -6.0 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

 

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