Fixed Income Daily Pulse, 06 July 2015

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

· The week started off in a risk off mode after majority Greek voters voted “No” in yesterday’s referendum in which they will not accept the proposals made by the EU Commission and IMF. Opening bids were at least 8-9 bps higher from last week’s closing but nothing was done. The bids improved gradually and offers were being lowered. There was some selling pressure on the 7-year and 10-year MGS initially but this was met by some market players buying on dips which helped stabilized levels. Subsequently, overall yields gained between 1.5-3.5 bps on the MGS curve. Volume was relatively thin throughout the day while the GII space was very quiet. In the GG/AAA segment, Prasarana Malaysia Berhad ‘09/22 increased 3 bps to close at 4.198% with a total trading volume of RM30m. Meanwhile ADCB Finance (Cayman) Limited ‘09/15 increased 4 bps with a total trading volume of RM20m. In the AA segment, Tanjung Bin Energy Issuer Berhad ‘09/17 eased 2 bps to settle at 4.286% with RM4m changed hands. Whereas Jimah Energy Ventures Sdn Bhd ‘05/23 eased 16 bps with a total trading volume of RM10m. MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.245 +3.5 32 5-yr 3.630 +3.5 5 7-yr 3.890 +2.5 407 10-yr 4.015 +3.5 236 15-yr 4.180 +3.0 0 20-yr 4.310 +1.5 0 30-yr 4.725 +2.0 0 IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.675 1.8 3-yr 3.730 1.0 5-yr 3.973 1.3 7-yr 4.150 2.5 10-yr 4.395 4.0 Source: Bloomberg, AmBank

               

  

Local News:

·        None.