Fixed Income Daily Pulse, 4 June 2015

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

·  Activity in the local Govvies market today picked up today with the highest volume seen in over 3 weeks and with RM5.5b done. Again, the short ends dominated most of the activity and we saw an exceptionally large ticket of RM1.04b done on the M’9/16, suspecting it was from the same name, who have been actively collecting the short-end bonds recently. Overall yields on the curve rose up by 4-6 bps apart from the shorter ends in which the 3Y was down by 1 bp and 5Y rose 1 bp. WI was active today, last taken at 4.04% and subsequently quoted at 4.07-0% level. Trading volume in the GG/AAA segment remained light. Notable trade such as DanaInfra Nasional Berhad ‘07/34 declined 2 bps to 4.66%, with a collective trading volume of RM10m. Meanwhile, PLUS ‘01/27 traded 1 bp higher to 4.52%, with RM20m changed hands. In the AA segment, Malaysia Airport Holdings Berhad ‘12/24 traded 2 bps lower to 5.12%, with RM4m done. Elsewhere, Gamuda Berhad ‘03/20 also saw the yields declined 1 bps and closed at 4.39%, with only RM5m changed hands. MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.330 -1.0 23 5-yr 3.620 +1.0 35 7-yr 3.900 +6.0 0 10-yr 3.040 +7.0 252 15-yr 4.220 +6.0 10 20-yr 4.320 +4.0 120 30-yr 4.720 +6.0 100 IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.648 0.0 3-yr 3.730 +2.5 5-yr 3.970 +3.0 7-yr 4.150 +4.5 10-yr 4.380 +6.7. Source: Bloomberg, AmBank

               

  

Local News:

·             None.