Fixed Income Daily Pulse, 25 May 2015

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

·        The week started off rather quietly, with major financial markets around the world on bank holiday. Volumes were very light throughout the whole day, even lighter than last week, with yields inching up slightly from the belly towards the long end of the curve. Volume is expected to pick up tomorrow when other financial markets reopen. The trading volume in the GG/AAA also quiet for today’s session. Among the 2027-2031 tranches of PLUS bonds, the yields of ‘01/31 declined 11 bps to 4.75% while other tranches remained unchanged at a range of 4.52%-4.70%, with a collective trading volume of RM110m. Meanwhile, PTPTN ‘03/24 traded unchanged at 4.27% with RM130m changed hands. In the AA segment, 2027-2032 tranches of DUKE bonds were well bidded, with the yields traded 6-10 bps lower to settle at a range of 4.93%-5.22%, with RM20m done. Another notable trade is Malakoff Power ‘12/30, where the yields declined 2 bps to 5.73% with RM36m changed hands.    MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.340 - - 5-yr 3.570 0.0 30 7-yr 3.780 +1.0 24 10-yr 3.880 +1.0 11 15-yr 4.120 +2.0 10 20-yr 4.250 +1.0 0 30-yr 4.620 - - IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.645 0.0 3-yr 3.695 +0.5 5-yr 3.900 +0.5 7-yr 4.095 +1.5 10-yr 4.275 +1.0 Source: Bloomberg, AmBank

               

  

Local News:

·             Malaysia’s unemployment rate declined and labor force participation improved in March. The unemployment rate dropped to 3% in March from 3.2% in February. The labor force participation rate came in at 67.7% versus 67.4% in February.