Fixed Income Daily Pulse, 29 July 2015

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

·  It has been a muted day with light traded volume as the market was focused on FOMC’s rate decision tonight. Yields on the MGS curve inched up slightly on the belly of the curve, between 1-2 bps with very thin volume on the benchmarks while the short end bonds were more active. In the GII space, there was some minor bidding interest on the 7-year GII; mainly from local Islamic banks, with c.RM230 million traded. Yields on the GII curve remain within a tight 1-2 bps range at close. With the 10-year GII auction closing tomorrow, WI was quoted to a tight 4.11-10 level at close. Current WI levels should attract some interest from investors looking for good yield. Malaysia Debt Ventures Berhad ‘01/22 remained unchanged to close at 4.14% with a total trading volume of RM100 million. Meanwhile, Danga Capital Berhad ‘01/30 eased 1 bp to close at 4.68% with a total trading volume of RM80 million. In the AA segment, Malaysia Airport Holdings Berhad ‘12/24 eased 1 bp to settle at 5.03% with RM100 million done. Meanwhile, WCT Holdings Berhad ‘10/21 eased by 4 bps to settle at 4.71% with RM10 million traded. MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.160 0.0 220 5-yr 3.510 +1.0 4 7-yr 3.860 +1.0 98 10-yr 3.985 +1.0 99 15-yr 4.250 +2.0 81 20-yr 4.330 0.0 0 30-yr 4.690 0.0 15 IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.700 0.0 3-yr 3.755 -0.8 5-yr 3.970 0.0 7-yr 4.160 0.0 10-yr 4.390 0.0 Source: Bloomberg, AmBank                      Source: BondStream, AmBank

               

  

Local News:

·             None.