Fixed Income Daily Pulse, 1 June 2015

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

·        The month started off sideways with yields unchanged from last week’s closing. Focus during the day was on the short-end bonds with around RM800m done for bonds which maturing within 3 years. Even with the sell down in MYR and local equity market, the local govvies market were still lack of directions. Traded volume thus far remained light on benchmarks. Trading volume in the GG/AAA segment is light as well. Notable trade is the PLUS ‘01/23 and ‘01/32 declined 1 and 2 bps to 4.31% and 4.77%, with a collective trading volume of RM20m. Meanwhile, Industrial Bank of Korea ‘02/17 traded 1 bp lower to 4.03%, with RM22m changed hands. In the AA segment, BGSM Management ‘12/16 traded 1 bp lower to 4.19%, with RM10m done. Elsewhere, Sunrise ‘02/16 also saw the yields declined 7 bps and closed at 3.96%, with only RM10m changed hands.    MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.330 0.0 67 5-yr 3.600 0.0 54 7-yr 3.820 0.0 45 10-yr 3.920 0.0 0 15-yr 4.150 0.0 5 20-yr 4.270 - - 30-yr 4.650 0.0 1 IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.645 +0.2 3-yr 3.720 0.0 5-yr 3.938 -0.2 7-yr 4.120 -1.0 10-yr 4.310 -0.5 Source: Bloomberg, AmBank

               

  

Local News:

·             None.