BOND+SUKUK INFORMATION EXCHANGE BIXMALAYSIA.COM NEWS UPDATE 27 May 2021 US Yield Daily Yield Weekly Yield Monthly Yield YTD Yield Treasury 25 May 21 Change 24 May 21 Change 18 May 21 Change 23 Apr 21 Change 31 Dec 20 MARKET bps bps bps bps 3 YEAR 0.30 -2 0.32 -4 0.34 -4 0.34 13 0.17 5 YEAR 0.79 -3 0.82 -4 0.83 -4 0.83 43 0.36 SUMMARY 7 YEAR 1.23 -5 1.28 -6 1.29 -3 1.26 58 0.65 10 YEAR 1.56 -5 1.61 -8 1.64 -2 1.58 63 0.93 MGS Yield Daily Yield Weekly Yield Monthly Yield YTD Yield 25 May 21 Change 24 May 21 Change 18 May 21 Change 23 Apr 21 Change 31 Dec 20 bps bps bps bps 3 YEAR 2.30 0 2.30 -3 2.33 -8 2.38 42 1.88 5 YEAR 2.58 1 2.57 3 2.55 1 2.57 48 2.10 7 YEAR 3.00 2 2.98 5 2.95 3 2.97 61 2.39 10 YEAR 3.20 1 3.19 -1 3.21 10 3.10 55 2.65 GII Yield Daily Yield Weekly Yield Monthly Yield YTD Yield 25 May 21 Change 24 May 21 Change 18 May 21 Change 23 Apr 21 Change 31 Dec 20 bps bps bps bps 3 YEAR 2.07 -1 2.08 -2 2.09 -9 2.16 15 1.92 5 YEAR 2.64 3 2.61 3 2.61 0 2.64 38 2.26 7 YEAR 3.02 -3 3.05 1 3.01 -1 3.03 51 2.51 10 YEAR 3.30 2 3.28 7 3.23 11 3.19 49 2.81 • 1 bps = 0.01% • Increase in Yield = Decrease AAA Yield Daily Yield Weekly Yield Monthly Yield YTD Yield 25 May 21 Change 24 May 21 Change 18 May 21 Change 23 Apr 21 Change 31 Dec 20 in the bond price/value bps bps bps bps 3 YEAR 2.82 0 2.82 -2 2.84 -6 2.88 37 2.45 5 YEAR 3.16 0 3.16 -3 3.19 -2 3.18 46 2.70 Source: US Treasury, BNM & 7 YEAR 3.50 0 3.50 -1 3.51 -6 3.56 55 2.95 BIX Malaysia 10 YEAR 3.92 0 3.92 -1 3.93 -5 3.97 66 3.26 NEWS BLOOMBERG Central banks running out of options as recovery falters in Asia UPDATE Asia’s surging coronavirus infections and slow pace of vaccinations is testing the limits of what central banks can do to further support what, until recently, had been the world’s stand out economic recovery. With interest rates already low, the likely policy response will centre on more Today's headlines of interest and government borrowing, relegating central banks to a supporting role. summaries as extracted from the That backdrop will overshadow decisions this week where policymakers international and local media. are expected to keep rates on hold – Indonesia, South Korea and New Zealand. “In my view, there is little room for further monetary policy stimulus, at least in terms of traditional policy levers like interest rate cuts, ” said Tuuli McCully, head of Asia-Pacific economics at Scotiabank. “I expect additional fiscal stimulus to play a key role in helping economies.” In Jakarta, the finance ministry has offered more tax cuts to spur economic activity and plans to stick with its US$84bil (RM348.31bil) net bond issuance target this year, even as borrowing costs climb. South Korea’s economy is being cushioned by soaring exports even as rolling social distancing restrictions damp consumer spending – prompting the government to pledge more fiscal spending to create jobs. The Bank of Korea is also expected to remain on hold when it meets tomorrow. NEWS BLOOMBERG Fed officials play down risk that higher inflation will persist UPDATE Federal Reserve officials pushed back against the threat that a spike in price pressures will prove lasting as the US economy reopens. Governor Lael Brainard, Atlanta Fed president Raphael Bostic and St. Today's headlines of interest and Louis’s James Bullard said they would not surprised to see bottlenecks summaries as extracted from the and supply shortages push prices up in coming months as the pandemic international and local media. recedes and pent-up customer demand is unleashed, but much of those price gains should prove temporary. “A very important part of inflation dynamics is longer-term inflation expectations and those have been extremely well anchored, implying that if we saw some development pushing inflation up I wouldn’t expect that to get embedded in the ongoing inflation rate, ” Brainard said. “If we did see inflation that moves persistently and materially above our goals in a manner that also threatened to have some impact on those long-term inflation expectations, we have the tools and the experience to gently guide inflation back to target, ” she said.US central bankers adopted a new framework in August that called for inflation to average 2% over time, and said they would accept modest overshoots after periods of undershoots. NEWS CNBC Treasury yields fall with the 10-year rate at 1.56% UPDATE U.S. Treasury yields fell on Tuesday, with the 10-year Treasury note yield hovering around 1.56%. The yield on the benchmark 10-year Treasury note fell to 5 basis points Today's headlines of interest and 1.557% at around 4:00 p.m. ET. The yield on the 30-year Treasury bond summaries as extracted from the dipped about 5 basis points to 2.253%. Yields move inversely to prices. international and local media. One basis point equals 0.01%. Federal Reserve officials, including Governor Lael Brainard and the central bank’s Atlanta President Raphael Bostic, have made comments recently playing down rising inflation and concerns about tightening of easy monetary policy. Kansas City Fed President Esther George said on Monday that it would be important not to stick to a “rigid formulation of policy reactions” as the economic picture changes, according to a Reuters report. Fed Vice Chair for Supervision Randal Quarles spoke before the U.S. Senate Committee on Banking, Housing and Urban Affairs on Tuesday. Auctions will be held Tuesday for $40 billion of 42-day bills and $60 billion of 2-year notes. DISCLAIMER No Offer The information provided and services described in the BIX website are of a general nature, are not offers for investment and are not intended to be personalised financial advice to investor. The information provided in the BIX website is not intended to be a substitute for professional advice. Reliance should not be placed on the BIX website and you should seek appropriate personalised financial advice from a qualified professional to suit your individual circumstances and risk profile. Website Information BIX website is a publisher of content supplied by third parties. 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