Fixed Income Daily Pulse, 10 June 2015

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

·  The day started off slightly bullish with opening prices on 10-year MGS being taken and both 7-year and 10-year benchmarks actively traded in the morning with yields -1 bp. However, the gains from the morning were erased during afternoon session when European yields started rising, resulting in local yields rising on the belly of the curve when the market started selling. The front end of the curve inched up 1 bp while the back end was slightly flattened. Traded volume remained light throughout the day while we some buying due to good yields as well as some selling to cut losses. Trading volume in the GG/AAA segment was lighter than previous day. Names unchanged include Prasarana Malaysia Berhad ‘09/29 and ‘08/26 at 4.55% and 4.42%, with a collective trading volume of RM70m. Meanwhile, PLUS ‘01/29 remained increased 1 bp settled at 4.64%, with RM20m changed hands. In the AA segment, First Resources Limited ‘10/21 remained unchanged at 4.57%, with RM40m done. Elsewhere, CIMB Thai Bank Public Company Limited ‘07/19 increased 9 bps settled at 4.90%, with only RM10m changed hands. MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.360 +1 180 5-yr 3.700 +1 30 7-yr 4.060 +2 232 10-yr 4.130 +3 122 15-yr 4.270 -2 0 20-yr 4.350 -2 0 30-yr 4.760 -1 1 IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.650 +0.5 3-yr 3.745 +1.0 5-yr 4.005 +2.5 7-yr 4.210 +3.5 10-yr 4.460 +3.0 Source: Bloomberg, AmBank

               

  

Local News:

·             None.