Fixed Income Daily Pulse, 13 May 2015

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

·         Post the sell-down yesterday, local govvies enjoyed a day of relieve rally following the easing of UST overnight. Yields generally eased across the curve albeit on light volume after the whipsaw week saw reeled market players taking a breather. On another note, WI was last quoted 3.53-52%, with estimated RM100m traded volume within a tight range of 3.535-53%. Over the GG/AAA segment, DanaInfra Nasional ‘11/21 saw some selloff, which the yields increased 3 bps to 4.10%, with the trading volume of RM30m. Meanwhile, Pengurusan Air SPV ‘06/18 also traded 5 bps higher to 3.80% with RM10m changed hands. Elsewhere in the AA segment, buying interest were found in FI bonds, with almost all FI bonds traded lower from the previous closing. Notable trade is Public Bank ‘10/18, which the yields declined 2 bps to 4.45% with RM30m traded.    MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.395 +0.5 20 5-yr 3.575 -2.0 752 7-yr 3.800 -3.0 20 10-yr 3.910 -2.0 50 15-yr 4.110 -1.0 2 20-yr 4.220 -1.0 0 30-yr 4.620 0.0 20 IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.650 +0.5 3-yr 3.720 +1.0 5-yr 3.905 -1.5 7-yr 4.080 -2.5 10-yr 4.260 -2.3 Source: Bloomberg, AmBank

               

  

Local News:

·           None.