FW: FI Research - New Issuance of 5-year MGS

 

 

Dear Readers,   Highlights of the report as follow:-

·         The new issuance of the 5-year MGS 04/23 with a size of RM4bil, recorded a bid-to-cover (BTC) ratio on the weaker side of 1.563 times. Average yield for this MGS is 3.757%, which sits within a relatively wide range between 3.728% and 3.780%. ·         At present, we found the 5-year MGS/UST spread of 90.8bps to be narrower than the average of 180.3bps since January 2016. The yield spread has narrowed from 132.1bps in the beginning of the year as the yield on the 5-year UST has been catching up to the 5-year MGS, rising 52.5bps year-to-date while the 5-year MGS increased by 11.2bps. ·         The next tender to watch is the new issuance of the 10-year MGII 10/28 this month. It will be the second new issuance of MGII in 2018. The last new issuance of such papers was the 10-year MGII 07/27 in November 2017 which reported a 1.832 times BTC ratio.

 

 

Best regards,

Fixed Income Research & Strategy

AmBank Research, AmBank (M) Berhad

+603 2036 2292 (DL) +03 2031 7218 (Fax)

Level 15, Bangunan AmBank Group, 55 Jalan Raja Chulan, 50200 Kuala Lumpur

 

 

 

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