Fixed Income Daily Pulse, 18 May 2015

The day’s trade recap (from our trading desk):

·        The week started off biddish, as there was a short rally in the morning, with yields down about 1 bp across the curve. Focus today was mainly on the short end MGSs & GIIs which were heavily traded, with around RM2b done. Offshore players have the high possibility to be the main buyers for these bonds as implied MYR funding is cheap. Market remains range bound at the moment with market players being indecisive on directions. Over the GG/AAA segment, Malaysia Airports Capital ‘12/22 saw some sell-off, with the yields increased 2 bps to 4.37%, with RM45m changed hands. Meanwhile, PLUS ‘01/38 also traded 1 bp higher to 4.73%, with trading volume of RM60m.  Elsewhere in the AA segment, BGSM ‘12/15 traded 7 bps higher to 4.08%, with RM20m changed hands.    MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.360 - - 5-yr 3.570 0.0 160 7-yr 3.770 -1.0 150 10-yr 3.870 -1.0 52 15-yr 4.110 -1.0 81 20-yr 4.220 -2.0 0 30-yr 4.660 - - IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.645 -0.5 3-yr 3.695 -1.0 5-yr 3.895 0.0 7-yr 4.070 -1.0 10-yr 4.256 0.0 Source: Bloomberg, AmBank

               

  

Local News:

·             None.