Fixed Income Daily Pulse, 2 June 2015

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

·        The bond market was livelier today as volumes picked up with yields rising up 1 bp across the curve apart from the 3-year benchmark. Focus was still on the short-end bonds with around RM2.5b done in which we saw some offshore counterparties unwinding on the short ends to take profit on their carry. Apart from that, there was also some small buying interest from offshore flows on the longer end bonds, looking to rebalance their portfolio. Trading volume in the GG/AAA segment remained light. Notable trade is the PLUS ‘01/36 declined 15 bps to 4.95%, with RM10m changed hands. Meanwhile, DanaInfra ‘11/44, Telekom ‘10/24, and Suria KLCC ‘12/24 traded unchanged at 4.23%, 4.41% and 4.40%, respectively. In the AA segment, Malakoff Power ‘12/19 traded 3 bps lower to 4.60%, with RM24m done. Elsewhere, UEM Sunrise ‘12/18 also saw the yields declined 5 bps and closed at 4.34%. MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.320 -1.0 13 5-yr 3.600 +1.0 8 7-yr 3.830 +1.0 34 10-yr 3.930 +1.0 7 15-yr 4.160 +1.0 12 20-yr 4.280 +1.0 11 30-yr 4.660 +1.0 - IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.648 +0.2 3-yr 3.730 +1.0 5-yr 3.955 +1.8 7-yr 4.125 +2.3 10-yr 4.350 +3.5 Source: Bloomberg, AmBank

               

  

Local News:

·             None.