Fixed Income Daily Pulse, 21 May 2015

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

·        It has been a rather quiet week thus far apart from the closing of new 20-year benchmark MGS auction which was very well received with BTC 2.72x; high at 4.267%; low at 4.237%; average at 4.254%. However, there were no trades done on the MGS ‘05/35 post auction. Other than that, yields remain unchanged across the curve. Only light volumes were done throughout the day where benchmarks done were all below RM100m. Market players are staying out for the time being with no clear direction of where the market is heading. The trading volume in the GG/AAA segment remained light today. Notable trade is 2026-2034 tranches of PLUS bonds which traded mixed to settle at a range of 4.48%-4.88%, with a collective trading volume of RM50m. Elsewhere in the AA segment, notable trade is Sarawak Energy ‘07/19, where the yields declined 1 bp to 4.30%, with RM50m changed hands.    MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.360 - - 5-yr 3.570 0.0 46 7-yr 3.770 0.0 30 10-yr 3.870 0.0 10 15-yr 4.110 0.0 80 20-yr 4.250 (NI) +3.0 555 30-yr 4.660 - - IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.640 -0.5 3-yr 3.705 0.0 5-yr 3.900 -1.5 7-yr 4.095 0.0 10-yr 4.277 -0.3 Source: Bloomberg, AmBank

               

  

Local News:

·             None.