Fixed Income Daily Pulse, 3 June 2015

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

·        The local govvies market today saw some price action on the short-end bonds, with one foreign name bidding up the MGS 16s and 17s, suspect a real money flow behind it, who have been actively collecting the short ends over the past 2 weeks. Volume on the longer end bonds remains very light. Market was surprised by the announcement of the re-opening of MGS ‘09/25 with a size of RM3b. WI was given at 3.95% (+1.5 bps from last quoted cash price) and subsequently quoted at 3.97-945%. Trading volume in the GG/AAA segment improved slightly for today’s trading sessions. Notable trade is the PLUS ‘01/29, where the yields declined 1 bp to 4.63%, with only RM10m done. Meanwhile, Rantau Abang Captal ‘09/15 declined 1 bp to 3.48% with RM15 changed hands. In the AA segment, Sabah Development ‘05/16 traded 2 bps higher to 4.27%, with a trading volume of RM5m. Elsewhere, UEM Sunrise ‘12/18 also saw the yields increased 1 bp and closed at 4.36%. MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.310 -1.0 64 5-yr 3.610 +1.0 0 7-yr 3.830 +1.0 80 10-yr 3.840 +4.0 30 15-yr 4.160 0 0 20-yr 4.280 - - 30-yr 4.660 - - IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.648 0.0 3-yr 3.730 0.0 5-yr 3.970 +1.5 7-yr 4.150 +2.5 10-yr 4.380 +3.0 Source: Bloomberg, AmBank

               

  

Local News:

·             None.