Fixed Income Daily Pulse, 19 May 2015

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

·         It has been a generally quiet day, where yields remain unchanged across the curve. Only RM300m was traded across all MGS & GII benchmarks throughout the day. Focus was still mainly on the short end bonds, mainly from offshore on the cheap implied funding, resulting in liquidity drying up significantly. The new issuance of 20-year MGS ‘05/35 was announced today with an issuance size of RM2b. Subsequent WI was quoted wide at 4.25-10% levels. Over the GG/AAA segment, a collective trading volume of RM100m was found in DanaInfra Nasional bonds, which the ‘04/30 yields declined 3 bps to 4.58%; while the ‘11/29 bonds remained unchanged at 4.57%. Meanwhile, Aman Sukuk ‘05/24 traded 2 bps lower to 4.40%, with RM50m changed hands.  Elsewhere in the AA segment, notable trade is Maybank ‘09/18, which saw the yields traded 1 bp lower to 4.71%, with a trading volume of RM40m.    MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.360 0.0 1 5-yr 3.570 0.0 46 7-yr 3.770 0.0 20 10-yr 3.870 0.0 56 15-yr 4.110 0.0 97 20-yr 4.220 - - 30-yr 4.660 - - IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.645 0.0 3-yr 3.695 0.0 5-yr 3.897 +0.2 7-yr 4.075 +0.5 10-yr 4.260 +0.4 Source: Bloomberg, AmBank

               

  

Local News:

·             None.