Fixed Income Daily Pulse, 17 June 2015

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

·  The local bond market took a bullish turn today with both the 10-year MGS & GII bided up by 2 foreign names and pushing yields down by 7 bps on the 10-year benchmarks. Another foreign name on the other hand was buying up the MGS ‘02/17 from the market with RM3b traded on the short ends. With the anticipation of the 7-year MGS ‘09/22 auction tomorrow, some local players were taking this opportunity to sell into strength and lighten up their books in order to stomach tomorrow’s auction. There was some good buying interest on with it being taken as low as 4.00%. The direction of where tomorrow’s auction is heading will be highly dependent on FOMC’s statement on its rate decision tonight. In the AAA/GG segment, SME Development Bank Malaysia Berhad ‘03/19 increased 5 bps to settle at 3.89% with RM50m changed hands. Aman Sukuk Berhad ‘05/24 eased 2 bps lower to close at 4.40% with a total trading volume of RM20m. In the AA segment, Tanjung Bin Energy Issuer Berhad ‘09/18 and ‘03/19, both eased 1 bp to settle at 4.43% and 4.52% with a total trading volume of RM15m. CIMB Bank Berhad ‘10/18 increased 2 bps to close 4.69% with RM3m changed hands MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.290 -5 941 5-yr 3.660 -2.5 10 7-yr 4.010 -4 70 10-yr 4.045 -7 357 15-yr 4.180 -5.5 0 20-yr 4.270 -6.5 0 30-yr 4.740 - - IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.650 0.5 3-yr 3.735 -0.5 5-yr 3.960 -1.5 7-yr 4.150 -2.5 10-yr 4.430 0.0 Source: Bloomberg, AmBank

               

  

Local News:

·             None.