Fixed Income Daily Pulse, 5 May 2015

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

·         Bond of the day is the 5-year MGS ‘10/20, with over RM980m traded today (representing 70% of the total volume traded for benchmark MGS). Despite the large trading volume, the 5-year MGS yields only inched 1 bp lower as some foreign buying flows was met by local players looking to take profit after a period of consolidation. On the remainder of the curve, volume traded was minimal with yields remained unchanged. Local govvies market is still immune to external movements, with little or no correlation to events around the world. Over the GG/AAA segment, 2026-2034 tranches of PLUS bonds were well bidded, with the yields declined 4-14 bps to settle at a range of 4.51%-4.88%, with RM35m changed hands. Meanwhile, Putrajaya Holdings ‘09/20 traded 8 bps lower to 4.13%. Elsewhere in the AA segment, trading activities were very light during today’s trading session. Notable trade is Anih Berhad ‘11/24 which declined 9 bps to 4.69%.    MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.280 0.0 12 5-yr 3.570 -1.0 981 7-yr 3.740 0.0 81 10-yr 3.850 +1.0 157 15-yr 4.030 0.0 22 20-yr 4.160 0.0 1 30-yr 4.550 0.0 27 IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.615 1.0 3-yr 3.647 2.7 5-yr 3.810 3.5 7-yr 3.975 3.5 10-yr 4.145 4.0 Source: Bloomberg, AmBank

               

  

Local News:

·           None.