Halister News

(Bloomberg) -- Ringgit advances for second day after S&P affirms nation’s foreign- and local-currency ratings.

• Ratings reflect strong external position and considerable monetary flexibility, S&P said in a statement after close of local market yesterday; corruption allegations in relation to 1MDB won’t impede ability of executive branch to promote sustainable public finances and balanced economic growth; outlook remains stable
• 1MDB may get fined over $1.83b repatriation issue, Edge reports
• Ringgit rises 0.3% to 4.0030 per dollar; Brent crude futures fall for fourth day, down 0.1% to $40.24/bbl
• USD/MYR 1-mo. NDF falls 0.3% to 3.9973; 10-DMA at 4.0305 below 21-DMA at 4.0750 since March 7
• FX options expiring this week include 4.0000 strikes for $425m on March 31
• Curve flattening for MYR rates to continue as local economy deteriorates, CBA analysts write in note dated March 28; suggests being long seven-year govt bonds while paying one- year NDIRS with target spread at zero as BNM keeps liquidity flush
• Yield on 3.955% govt bond due Sept. 2025 rose 1 bp yesterday to 3.878%
• Five-year credit-protection costs for nation rose 5 bps yesterday to 164 bps: CMA