Fixed Income Daily Pulse, 30 June 2015

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

· Coming into the quarter end, the market took a bullish turn today where there is a good buying interest in the 5-year, 7-year and 10-year MGS benchmarks. The 7-year MGS ‘09/22 attracted the most volume with RM950m traded while the other benchmarks traded below RM200m. The 5-year MGS gapped as it was done -8 bps lower than yesterday’s closing. It is suspected that there was an order flow for this bond. Foreigners were quite active today on both sides however majority were buyers. Resultant yields eased off between 3-8 bps on the MGS curve. In the GG/AAA segment, 2021-2030 tranches of Danalnfra Nasional Berhad bonds remained unchanged at 4.13% to 4.94% with a total trading volume of RM45m. Meanwhile Genting Capital Berhad ‘06/22 eased 19 bps to close at 4.62% with RM1m changed hands. In the AA segment, Malayan Banking Berhad ‘05/19 eased 6 bps to settle at 4.48% with RM70m changed hands. Whereas CIMB Bank Berhad ‘12/20 increased 5 bps to close at 4.70% with a total trading volume of RM30m. MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.200 -4.5 5 5-yr 3.610 -8.0 129 7-yr 3.950 -5.0 1055 10-yr 4.015 -6.0 279 15-yr 4.180 -3.0 16 20-yr 4.270 -3.0 0 30-yr 4.720 -3.0 0 IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.645 0.5 3-yr 3.735 0.5 5-yr 3.940 -2.0 7-yr 4.150 0.5 10-yr 4.390 0 Source: Bloomberg, AmBank

               

  

Local News:

·        None