Fixed Income Daily Pulse, 04 Aug 2015

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

·  Some decent bidding interest in local govvies today led by the 7-year MGS being the outperformer of the day as yields eased lower by 4.5bps with a total of RM182 million being done. Market sentiment feels a tad more bullish today with better bidders on 5-, 7- and 10-year MGS benchmarks while the back end of the curve was quiet. Curve flattened as we still see some selling pressure on the front end, particularly 3-year MGS benchmark. However, the really short ends (< 1 year) were better bidded on lower implied funding post-lunch due to lower USD/MYR NDF levels after USD/MYR came off it’s high of 3.8700 to close 3.8530/50 on the day. HSBC Amanah Malaysia Berhad ‘09/17 increased 2 bps at 3.95% with a total trading volume of RM20 million. Meanwhile, Celcom Networks Sdn Bhd ‘08/19 increased 10 bps to close at 4.40% with a total trading volume of RM35 million. In the AA segment, 2018-2026 Sarawak Energy Berhad bonds traded at mix to settle at 4.17%-4.73% with RM53 million done. Meanwhile, Malakoff Power Berhad ‘12/19 remained unchanged at 4.55% with a total RM30 million traded. MGS Benchmark Issues MGS Closing Level (%) Chg (bp) Vol (RM m) 3-yr 3.240 +2.0 1 5-yr 3.630 -2.0 64 7-yr 3.950 -4.5 182 10-yr 4.055 -2.0 134 15-yr 4.280 -1.0 1 20-yr 4.340 -1.0 0 30-yr 4.700 -1.0 1 IRS Closing Rates IRS Closing Yld (%) Chg (bp) 1-yr 3.745 -1.0 3-yr 3.805 -3.0 5-yr 4.005 -3.5 7-yr 4.185 -1.5 10-yr 4.390 -1.0 Source: Bloomberg, AmBank                      Source: BondStream, AmBank

               

  

Local News:

·             None.