The day’s
trade recap (from our trading desk):
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· On echoes of previous days, local govvies
continued lumbering along after a short early morning rally around
1-2 bps. Trading volume was extremely light at today’s session,
notably saw the MGS ‘04/30 printed at 4.08-09% levels with RM140m
changed hands, which could signal a low inflation mentality in
positioning. The reopening of SPK ‘07/22 was also announced today,
size of RM2.0b (+RM1.5b private placement). WI was quoted 4.05-95%
with nothing done, mid-to-mid 12 bps spread to MGS. Spread is extremely
tight compared to historical average of 35-40 bps, although it
should be expected given the tightening of GII/MGS spreads. This
issuance is expected to be lightly traded post auction as a yield
hungry market gobbles up the issuance. Over the GG/AAA segment,
2023-2024 tranches of Telekom traded mixed to a range of
4.36%-4.43%, with a collective trading volume of RM80m. Elsewhere
in the AA segment, Sarawak Energy ‘07/24 and ‘06/26 traded 3 and 2
bps lower to 4.68% and 4.82% respectively, with RM15m changed
hands. Notable trade also included Anih ‘11/18, which saw the
yields traded 1 bp lower to 4.24% with RM30m traded.
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MGS Benchmark Issues
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MGS
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Closing Level
(%)
|
Chg (bp)
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Vol (RM m)
|
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3-yr
|
3.34
|
-1
|
1
|
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5-yr
|
3.65
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0
|
380
|
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7-yr
|
3.79
|
-1
|
28
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10-yr
|
3.89
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0
|
1
|
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15-yr
|
4.09
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-3
|
140
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20-yr
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4.21
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-1
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0
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30-yr
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4.59
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0
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0
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IRS Closing Rates
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IRS
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Closing Yld (%)
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Chg
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1-yr
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3.62
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0
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3-yr
|
3.65
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-2
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5-yr
|
3.79
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-2
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7-yr
|
3.97
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-1
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10-yr
|
4.13
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-1
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