HALISTER1: Nomura Takes Partial Profit on Receive MYR 1s3s10s NDIRS

Nomura Takes Partial Profit on Receive MYR 1s3s10s NDIRS

(Bloomberg) -- Nomura takes some profit on its receive MYR 3mfwd1s3s10 NDIRS trade that was done at beginning of April, strategists Vivek Rajpal and Prashant Pande write in May 9 note.
  • Trade performed well in April as KLIBOR fixings fell and front-end rates reached new lows while longer-end underperformed; given the good performance in the last month, Nomura sees value in taking partial profits
  • Position currently sized at USD15K DV01 in belly of 3mfwd1s3s10s; Nomura takes profit on USD5K DV01 while maintaining USD10K DV01, and remains open to adding it back should it retrace
  • Nomura awaits Malaysia’s 1Q GDP data due May 13 and BNM meeting on May 19; market may react to any signs of dovishness as May 19 meeting will be new BNM governor’s first rate review
  • Expects volatility in rates markets; if there’s uptick in rates or any meaningful flattening, Nomura may add to positions reflecting its bias toward front-end receivers and steepeners
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Prashant Pande (Nomura Holdings Inc)
Vivek Rajpal (Nomura Holdings Inc)

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