Fixed Income Daily Pulse, 03 Aug 2015

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

·  Quiet start to the week in local govvies even with UST yields coming down after reports showed poor wage growth in the US. On the local front, govvies market was near last Friday’s closing levels but not much was done during the morning session. Post-lunch, with USD/MYR grinding higher towards 3.8500 levels and eventually breaking it, bids turned more defensive as market players remain jittery and preferred to stay sidelined. There were two bill issuances today; the first of the year (maturing 1-Mar-16 and 3-May-16) and it was well bidded as the BTC was 2.975x and 4.3x respectively with results between 3.13% and 2.98%. Perbadanan Tabung Pendidikan Tinggi Nasional ‘03/24 remained unchanged at 4.32% with a total trading volume of RM100 million. Meanwhile, Industrial Bank of Korea ‘02/17 increased 1 bp to close at 4.14% with a total trading volume of RM10 million. In the AA segment, YTL Power International Berhad ‘08/18 and ‘03/23 eased 2 bps and 1 bp to settle at 4.18% and 4.60% with RM40 million done. Meanwhile, BGSM Management Sdn Bhd ‘12/17 eased 6 bps at 4.31% with a total RM15 million traded. MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.220 0.0 25 5-yr 3.650 0.0 1 7-yr 3.995 -0.5 75 10-yr 4.075 0.0 78 15-yr 4.290 -1.5 12 20-yr 4.360 0.0 0 30-yr 4.710 0.0 30 IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.755 0.5 3-yr 3.835 -1.0 5-yr 4.040 0.5 7-yr 4.200 -1.0 10-yr 4.400 -4.0 Source: Bloomberg, AmBank                      Source: BondStream, AmBank

               

  

Local News:

·             None.