Fixed Income Daily Pulse, 13 April 2015

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

·         Local govvies market laboured on aimlessly with slightly better selling in the belly of the curve on light volume. Market players showed concern as a steadily weakening MYR ended the day 1.82% weaker to 3.7090. Afternoon session trading was non-existent with the market showing a lack of interest in a sideways market. WI traded early morning at 3.62%, indicative levels 3.64-61%. Over the GG/AAA segment, Prasarana ‘05/23 declined 10 bps to 4.22% with RM65m changed hands. Meanwhile, PLUS ‘01/25 and ‘01/28 declined 5 and 1 bps to 4.54% and 4.69% respectively, with a collective trading volume of RM50m. Elsewhere in the AA segment, 2018-2027 tranches of Anih bonds gained were well bidded, with the yields closed 3-9 bps lower to a range of 4.29%-4.91%. MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.34 0 206 5-yr 3.62 (WI) +5 40 7-yr 3.77 +1 30 10-yr 3.88 +1 3 15-yr 4.09 0 0 20-yr 4.20 - - 30-yr 4.57 0 0 IRS Closing Rates IRS Closing Yld (%) Chg 1-yr 3.62 1 3-yr 3.65 1 5-yr 3.76 0 7-yr 3.93 0 10-yr 4.09 -3