MALAYSIA: Final 2024 GDP Confirms Stellar Year for Malaysia. 

• Tsys yields are holding steady throughout the session curves are a touch flatter, the belly is outperforming with the 7yr  -1.6bps at 4.688%, the 2yr is -0.8bps at 4.358%, while the 10yr is trading -1.4bps at 4.778%
• Futures are steady with TY +01 at 107-12+. While the 2s10s curve is about 1bps lower at 41.327.
• Ranges have been narrow across all tenors ahead of CPI tonight. We have seen a 0.5-1bps cooling in rate cut expectations across the next few meetings

ACGBs (YM -2.0 & XM -2.0) are slightly cheaper after trading in a narrow range in today's data-light Sydney session.   

• Cash US tsys are 1-2bps richer in today’s Asia-Pac session after yesterday’s directionless session. Focus turns to today’s CPI inflation data for December where rental inflation is expected to accelerate to an average figure that firmly rounds to 0.3% M/M in December.
• Cash ACGBs are 1-2bps cheaper with the AU-US 10-year yield differential at -15bps.
• Swap rates are 1-2bps higher.
• The bills strip -1 to -2 across contracts.
• RBA-dated OIS pricing is little changed across meetings today. A 25bp rate cut is fully priced for April (102%) now, with the probability of a February cut at 68% (based on an effective cash rate of 4.34%).
• Tomorrow, the local calendar will see the December Employment Report. The market is expecting +15k jobs with the unemployment rate nudging higher from 3.9% to 4.0%.
• AOFM Bond issuance will issue A$700mn of the 2.75% 21 November 2027 bond on Friday. 

Oil markets are tracking relatively steady in the first part of Tuesday trade, after losing some ground in Tuesday trade. Gold is likewise steady; copper is down a touch and iron ore is close to unchanged. Markets likely awaiting the key US CPI release later. 

• The active Brent crude contract was last just under $80/bbl, while WTI was near $77.60/bbl. Brent lost 1.35% for Tuesday's session, while WTI lost slightly more, down 1.67%. The Wall Street Journal reported that President-elect Donald Trump is preparing a set of energy-related executive orders, to sign upon his inauguration on Jan 20, that would unwind Biden administration rules on offshore/onshore drilling on federal lands, tailpipe emissions, and LNG exports approval.
• Still, an industry report hinted at a further draw down in US stockpiles, which may aid sentiment from a supply standpoint. This comes after the US sanctions move late last week. The trend structure in WTI futures remains bullish, with sights on $79.59, the Jul 5 ‘24 high. On the downside, a reversal lower would expose the 20-day EMA, at $73.16.
• Gold is little changed, last near $2675/76. Recent highs near $2700 remain intact. Dips sub the 100-day MA (close to $2636) have been supported in recent weeks.