AM Bank Group (AMB) in the latest Daily Market Snapshot Report said the local bond market little moved post-Jackson Hole as the dovish tone from the Fed Chair was widely anticipated.

Market players seemed to be throwing focus back onto upcoming PCE Price Index data this Friday to judge how aggressively the Fed will cut its interest rates. 

With regards to MYR corporate bonds, flows in the PDS space were also relatively muted at MYR484 million, but AMB saw traders still buying high-quality papers, especially among infrastructure, highways, and energy names.

Among notable trades were MYR40 million on Pengurusan Air SPV 06/25, done at 3.285%, MYR20 million on Putrajaya Holdings 04/25 (AAA), done at 3.556%, and MYR4 million on Leader Energy 07/27 (AA-) done at 4.436%. 

Towards the Asia Pacific, the Chinese Yuan held gains yesterday following fresh dovish signals last Friday. 

News reports indicate that China injected liquidity amounting to Chinese Yuan 300 billion via 1Y MLF, and there was some cautious sentiment for the Chinese Yuan ahead of PMI prints this week.

Meanwhile, there was late USD support on safe-haven demand due to the bombing in Lebanon, which also aided the Japanese Yen and saw US Dollar / Japanese Yen ending flat. 

The geopolitical risks also pressured the Australian Dollar as it slightly backed down from the 0.680 level. 

The ringgit strengthened amid the weaker dollar, and the Malaysian currency also gained against regional currencies. 

“Expectations of inflows into the ringgit have increased vis-a-vis the region, as we think Malaysia has been way off the radar of foreign investors in the past year until recently,” said AMB. - Aug 27, 2024 

https://focusmalaysia.my/ringgit-strengthens-against-usd-other-currencies-with-expected-inflows/