Malaysian Bond Market

Trading activity eased this week compared to previous week where benchmark local govvies registered a trading volume of RM12.9bil compared to the preceding week’s RM17.8bil. At Friday’s 11am pricing, the 3-,5-, 7-, 10-, 15-, 20- and 30-year benchmark MGS yields settled at 3.35%, 3.82%, 4.00%, 4.08%, 4.49%, 4.63% and 4.80% respectively.

However, the secondary corporate bonds market recorded higher trading activities compared to last week. Week to date, total trading volume stood at RM2.4bil compared to last week’s total of RM1.23bil. About 75% of the trading volume was contributed by the GG/AAA, 21% by the AA segment and the remaining 4.2% by the A segment.

In the GG/AAA segment, notable trades included tranches of Cagamas 2017-2028 which recorded a trading volume of RM255mil with yields closing mixed at 3.68%-5.02%. Pengurusan Air SPV bonds 2017-2026 recorded a trading volume of RM245mil where yields closed higher at 3.50%-5.11%. The toll road sector also garnered some interest this week with Lebuhraya Duke Fasa 3 bond of ‘08/34 where yields closed lower at 5.26% with a collective trading volume of RM140mil. Prasarana Malaysia tranches 2019-2036 also attracted some interest with a total trading volume of RM135mil while yields closed mixed at 3.96%-5.49%.

Elsewhere in the AA segment, notable trades comprised Malayan Banking bond with yields closing lower at 4.84% with RM50mil changed hands. BGSM Management ‘12/19 and ‘06/24 garnered some trading interest, with yields of 4.62%5.00% and a trading volume of RM50mil. Encorp Systembilt ‘11/26 and ‘05/27 recorded a trading volume of RM40mil with yields at 4.53%-4.8%. Public Bank bonds’ ‘08/17 and ‘09/18 yields closed lower at 3.92%-4.40% with a total trading volume of RM36mil.