Fixed Income Daily Pulse, 29 June 2015

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

· With the uncertainties looming around Eurozone and a high probability of Greece going into a default, it was a risk off mode for markets around the world today. As a result, the local bond market was tilted bearish today with yields rising between 2.5-7.5 bps, with the 5-year MGS raising the most. Albeit the bearishness in the market, traded volume was very light on the benchmarks. However, there is RM1.3b was traded on the GII 7/15, with good buying interest from local Islamic Banks looking to fulfill its HQLA requirements before month end. Apart from that, there was also the auction closing for the 5-year GII today which saw a BTC of 2.207x, Hi 3.761, Lo 3.730, Avg 3.743. The auction closed at 3.75-74. Post auction, there was not much trading activity on the bond. In the GG/AAA segment, 2021-2030 tranches of Danalnfra Nasional Berhad traded at mix at a range 4.11% to 4.59% with a total trading volume of RM32m. Meanwhile Telekom Malaysia Berhad increased 1 bp to close at 4.42% with RM10m changed hands. In the AA segment, Sarawak Energy Berhad eased 2 bps to settle at 4.18% with RM3m changed hands. Whereas Hong Leong Bank Berhad eased 8 bps to close at 4.63% with a total trading volume of RM1m. MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.245 +4.5 43 5-yr 3.690 +7.5 39 7-yr 4.000 +3.5 250 10-yr 4.075 +3.0 0 15-yr 4.210 +3.0 0 20-yr 4.300 +2.5 0 30-yr 4.750 +4.0 0 IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.640 -0.2 3-yr 3.730 0 5-yr 3.960 1.8 7-yr 4.145 2.0 10-yr 4.390 1.8 Source: Bloomberg, AmBank

               

  

Local News:

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