Fixed Income Daily Pulse, 28 May 2015

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

·        Market yields rose 1 bp across the curve with very light trading volume. Local players are still rather heavy on their books, thus not doing anything much. There was a closing of the re-opening of GII ‘07/22 in the morning, with a BTC of 2.087x, Hi 3.924%, Lo 3.890%, Avg 3.914%; in line with WI quoted pre-auction. Post auction, the bond was traded lightly around the average yield. Apart from that, there was some light trading on the 10-year GII with about RM100m done. Trading activities in the GG/AAA segment was light as well. Danga Capital ‘04/20 declined 1 bp to 4.10%, with a trading volume of RM75m. Meanwhile, BPMB ‘09/21 and ‘09/24 were well bidded as well, with the yields traded 1 and 2 bps lower to 4.08% and 4.09%, with RM30m changed hands. In the AA segment, notable trade is RHB Bank ‘07/19, where the yields traded 5 bps lower to 4.42%. Elsewhere, Kimanis Power ‘08/24 also saw the yields declined 5 bps and closed at 4.63%.    MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.340 0.0 1 5-yr 3.590 +1.0 0 7-yr 3.800 +1.0 10 10-yr 3.910 +1.0 38 15-yr 4.140 +1.0 67 20-yr 4.260 +1.0 10 30-yr 4.640 +1.0 0 IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.645 -0.5 3-yr 3.720 +0.5 5-yr 3.925 +1.0 7-yr 4.105 +0.5 10-yr 4.300 +2.0 Source: Bloomberg, AmBank

               

  

Local News:

·             None.