Malaysia recorded a trade surplus of 11192.61 MYR Million in March of 2016. But in coming months it is expected to be a tad lower than in the previous months, but since FX reserve has been moving away from the USD 90bn mark and import coverage has been improving, the trade release is unlikely to garner much attention.  

The MYR rate market has been fairly resilient despite recent negative news flow.

Strong US payrolls can point to upside to MYR rates but looking beyond this we continue to like bills/bonds with tenor 3Y or below.

In the favourable short term outlook and absent a massive flare up in the risk aversion, the inter-EM positive carry trades should perform well.

Entry point has become attractive after the recent rally, which seems to be stalling.

In Malaysia, political risks are underpriced while sentiment towards Indonesia is solid and bond inflows remain robust.