Credit Markets Weekly
7y GII 08/25 Reopening Announced, Prints Healthy BTC 3.397x Post GE14.
SUMMARY:
¨ MYR Credit Market: Focus was on the reopening 7y benchmark GII 08/25 today. The mentioned tender of MYR3bn, attracted healthy demand with BTC 3.397x post GE14. The 3y MGS closed unchanged at 3.66% while the 10y MGS weakened as it ended the week at 4.16%. Govvies weekly trading volume moderated to MYR2.9bn while corporate bonds/sukuks secondary trades eased to MYR287m amid a shorter trading week. A total of MYR1.03bn was issued in the MYR primary space.
¨ Corporate News – RAM reaffirmed the AA3/Sta rating on TIME dotcom Berhad
¨ APAC USD Credit Market: Escalating Middle East tensions, though risk markets continue up. The UST yield curve continue to bear flatten with the 2y UST traded weaker +3.80bps WoW to close at 2.53% while the 5y, 10y and 30y USTs ended mixed to end the week at 2.84% (+5.45bps WoW), 2.97% (+1.98bps WoW) and 3.10% (-1.80bps WoW) respectively. The DXY remained unchanged as investors pared gains after strengthening over the last three (3) weeks, closing the week at 92.54 (-0.03% WoW).
¨ Rating Actions – Rating Actions - Fitch upgraded OCBC Wing Hang Bank to AA-/Sta from A+/Sta; Moody’s upgraded MNC Investama Tbk (BHIT) to B3/Neg from Caa3; Fitch revised China CITIC Bank International Ltd (CNCBI) rating outlook to BBB/Pos from BBB/Sta; Fitch rating downgraded the outlook on Commonwealth Bank of Australia (CBA) to AA-/Neg from AA-/Sta; Fitch revises China Logistics Property Holdings CO Ltd rating outlook to B/Neg from B/Sta; Moody’s changed Nestle Australia Ltd rating outlook to Aa1/Neg from Aa1/Sta; Moody’s revised SK Telecom Co Ltd rating outlook to A3/Neg from A3/Sta; Fitch assigns B/Pos to Zhenro Properties Group Ltd; Moody’s also assigns Zhenro Properties Group Limited B2/Sta rating; Moody’s assigned AAC Technologies Holdings Inc Baa1/Sta rating; Moody’s assigns Zhongyuan Yuzi Investment Holding Group Co Ltd A3/Sta rating.
Table 1: Index Weekly Movements
Indices | 11-May | 4-May | Weekly Chg (bps) |
iTraxx AxJ 5y IG | 75.2 | 76.4 | -1 |
SOR 2y (%) | 2.05 | 2.02 | 3 |
SOR 5y (%) | 2.38 | 2.35 | 3 |
Malaysia 5y CDS | 89.3 | 77.7 | 12 |
MGS 3y (%) | 3.66 | 3.66 | 0 |
MGS 5y (%) | 3.79 | 3.79 | 0 |
MGS 7y (%) | 3.92 | 3.92 | 0 |
MGS 10y (%) | 4.16 | 4.11 | 5 |
AAA 5y Spread* (bps) | 62 | 68 | -6 |
AAA 10y Spread* (bps) | 61 | 66 | -5 |
AA 5y Spread* (bps) | 92 | 98 | -6 |
AA 10y Spread* (bps) | 97 | 102 | -4 |
Source: Bloomberg, BNM, RHBFIC *MYR-denominated bonds
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