Fixed Income Daily Pulse, 02 July 2015

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

· The market opened with some selling pressure on the belly of the curve as market players looked to lock in profit after the recent rally on the back of rising global yields overnight. This selling was supported by some buyers after yield rose 2-3 bps, thus seeing good 2-way price action in the morning. Traded volume was lighter as compared to the past few days, with RM700m traded on all benchmarks while there were also some big flows done on the short ends. Yields on the 3-year and below remained unchanged while the rest of the curve firmed by 2-4 bps. In the GG/AAA segment, Bank Pembangunan Malaysia Berhad ‘09/21 increased 1 bp to closed at 4.10% with RM10m changed hands. Meanwhile PLUS ‘01/21 and ‘01/22 eased 1 bp to settle at 4.20% and 4.26% with a total trading volume of RM20m. In the AA segment, Sarawak Energy Berhad ‘01/22 eased 4 bps to settle at 4.48% with RM2m changed hands. Whereas Malakoff Power Berhad ‘12/18 and ‘12/29 eased 4-7 bps to trade at 4.49%-5.40% with a total trading volume of RM20m. MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.190 0 666 5-yr 3.595 +2.5 24 7-yr 3.850 +3.0 241 10-yr 3.980 +4.0 371 15-yr 4.150 +3.0 30 20-yr 4.290 +2.0 0 30-yr 4.700 +2.0 0 IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.640 0.5 3-yr 3.720 1.0 5-yr 3.955 4.0 7-yr 4.130 3.5 10-yr 4.350 3.5 Source: Bloomberg, AmBank

               

  

Local News:

·        None.