Fixed Income Daily Pulse, 26 May 2015

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

·        Market volumes pick up today, after a quiet session yesterday. Focus for today was mainly on the short end bonds as total volume traded was around RM1b. However, volumes on benchmarks were light. Yields remain largely unchanged across the curve apart from the 3-year in which it inched lower by 1 bp. There was an announcement of the reopening of GII ‘07/22 with an issuance size of RM3b. WI was given at 3.90% and subsequently at 3.91-88%. In the GG/AAA segment, Pengurusan Air SPV ‘11/20 and ‘02/21 were well bidded, with the yields declined 3 and 1 bps to 4.00% and 4.05%, with a collective trading volume of RM25m. Meanwhile, Prasarana Malaysia ‘11/16 saw some selloff, where the yields traded 5 bps higher to 3.64%, with RM90m changed hands. In the AA segment, notable trade is the Bumitama Agri ‘03/19, where the yields traded 4 bps lower to 4.46%, with RM80m done.    MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.330 -1.0 70 5-yr 3.570 - - 7-yr 3.780 - - 10-yr 3.880 0.0 10 15-yr 4.120 0.0 40 20-yr 4.240 -1.0 0 30-yr 4.620 - - IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.645 0.0 3-yr 3.710 +1.5 5-yr 3.910 +1.0 7-yr 4.100 +0.5 10-yr 4.290 +1.5 Source: Bloomberg, AmBank

               

  

Local News:

·             None.