Fixed Income Daily Pulse, 27 May 2015

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

·        Volume at today’s session remained light while yields inched up slightly across the curve. Focus for today was the selling off of the 10-year MGS, with around RM150m traded followed by the 20-year MGS and 10-year GII with RM90m and RM60m traded respectively. The selling on the 10-year benchmark is to make room for the reopening of GII ‘07/22 tomorrow. WI was done at 3.91% and 3.92% and last quoted at 3.92-90%. In the GG/AAA segment, Telekom Malaysia ‘10/24 and ‘12/24 traded mixed to close at 4.42% and 4.41%, with a collective trading volume of RM30m. Meanwhile, PTPTN ‘03/24 garnered some trading activities with the yields traded unchanged at 4.27%, with RM130m changed hands. In the AA segment, 2026-2031 tranches of DUKE bonds were well bidded, with the yields declined 2-18 bps to settle at a range of 4.86%-5.15%, with RM31m done. Elsewhere, Sarawak Energy ‘07/29 inched up 1 bp to 5.06%, with RM45m changed hands.    MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.340 +1.0 25 5-yr 3.580 +1.0 3 7-yr 3.790 +1.0 10 10-yr 3.900 +2.0 155 15-yr 4.130 +1.0 2 20-yr 4.250 +1.0 90 30-yr 4.630 +1.0 0 IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.650 0.5 3-yr 3.715 0.5 5-yr 3.915 0.5 7-yr 4.100 0.0 10-yr 4.280 -1.0 Source: Bloomberg, AmBank

               

  

Local News:

·             None.