The euro depreciated against the stronger dollar by 0.5% but was underpinned by Macron’s centrist party victory of 32.3% in the first round of parliamentary elections indicating Macron is likely to win a big majority.
The ringgit weakened by 0.3% against the greenback over the week prompted by weaker buying interest triggered by the US Federal Reserve’s decision to raise interest rates by 25 bps to 1.25% during its June 2017 meeting, and gains in US Treasury yields towards the end of the week which caused the dollar to rebound.
At Friday’s 11am pricing, the 3-, 5-, 7-, 10-, 15-, 20- and 30-year benchmark Malaysian Government Securities yields settled at 3.26%, 3.55%, 3.83%, 3.87%, 4.32%, 4.51% and 4.71% respectively.
About 60% of the trading volume was contributed by the GG/AAA, 35% by the AA segment and the remaining 5% by the A segment.
In the GG/AAA segment, notable trades included ‘04/20 Danga Capital bond which recorded a total trading volume of RM171mil with yields 1 bps higher at 4.11%.