M’sian Bond Market
Local govvies yield curve edged lower on the front-end due to foreign buying interests on the 5-year Malaysia government securities. Local govvies saw RM14.4bil trading volume, translating into daily average of RM4.8bil. This was higher compared to preceding week daily average of RM3.8bil. On Friday’s 11am pricing, the 3-,5-, 7-, 10-, 15-, 20- and 30-year benchmark MGS yields settled at a respective 3.23%, 3.46%, 3.76%, 3.90%, 4.17%, 4.29% and 4.68%.
In the secondary PDS market, we saw a lower volume in trading activities this week compared to last week. Total trading volume for the week stood at RM2bil, averaging RM662mil daily compared to last week’s average of RM836mil. About 51% of the trading volume was contributed by the GG/AAA segment and 48% by the AA segment with the remaining 1% in the A segment.
Trading activities in the GG/AAA segment showed lower trading volume compared to last week. Notable trade included 2016-2028 tranches of Cagamas bonds which saw yields traded at mixed to close at the range of 3.33%-4.55% with a collective trading volume of RM135mil recorded. Other notable trades also included ‘11/16 and ‘11/19 of Manjung Island Energy bonds which recorded a total trading volume of RM110mil with yields closed lower at 3.55% and 3.98% respectively. We also saw some trading activities focus on 20232036 Prasarana Malaysia bonds which traded at mixed to close at 4.10%-4.76% with a collective trading volume of RM145mil.
Trading volume showed an increase in the AA segment compared to previous week. We saw bonds within the energy sector are actively traded during the review period. Notable trade included 20222032 tranches of Tanjung Bin Energy Issuer bonds saw yield traded at mixed to close at 4.67%-5.17% with RM175 million changed hands. We also saw, 2025-2031 tranches of Jimah East Power bonds which yields traded lower to settle at the range of 4.81%-5.13% with a collective trading volume of RM57mil. Other notable trade also included Sarawak Energy ‘07/24, which saw yield eased 4 basis points to close lower at 4.60% with RM25mil changed hands.