Fixed Income Daily Pulse, 25 June 2015

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

· It was another quiet day in the local bond market with yields similar closing as yesterday. The star performer of the day was the MGS 7-year again where we saw RM380m traded volume whereas other benchmarks were very light. There is some selling interest on the 10-year MGS when it was at 4.03% and it was offered on by a few different parties. There was an announcement of the re-opening auction of 5-year GII with a size of RM3b today. Post announcement, have quoted as narrow as 3.745%-3.725%. Other than that, the GII space remained quiet, with very light trading activity. In the GG/AAA segment, Manjung Island Energy Berhad ‘11/19 increased 2 bps to settle at 4.09% with RM110m. Meanwhile Danga Capital Berhad remained unchanged at 4.66% with a total trading volume of RM 50m. Whereas CIMB Bank Berhad eased 28 bps lower to 4.40% with RM10m changed hands. BGSM Management Sdn Berhad ‘12/19 increased 4 bps higher to 4.61% where as ‘12/20 remained unchanged at 4.74%, together with a collective trading volume of RM14m. MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.190 +1 186 5-yr 3.630 0 13 7-yr 3.960 0 382 10-yr 4.030 +0.5 12 15-yr 4.180 0 12 20-yr 4.270 - - 30-yr 4.700 - - IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.635 0 3-yr 3.720 0 5-yr 3.935 1.0 7-yr 4.110 0 10-yr 4.350 -1.5 Source: Bloomberg, AmBank

               

  

Local News:

·        None