Malaysian Bond Market
Local govvies yields rose at the backend of the curve due to the weaker ringgit, softer oil prices and higher 5-year CDS.
Trading was also tepid due to the Raya holidays.
At Friday’s 11am pricing, the 3-, 5-, 7-, 10-, 15-, 20- and 30-year benchmark MGS yields settled at 3.33%, 3.61%, 3.89%, 3.91%, 4.38%, 4.55% and 4.74% respectively.
Trading activities were light this week due to the long weekend compared to the previous week where benchmark local govvies registered a trading volume of RM3.4bil compared to the previous week’s value of RM9.1 billion.
The secondary corporate bonds market also recorded less trading activities compared to last week. Week to date, total trading volume was lower at RM 0.46bil compared to last week’s RM2.44bil.
About 34% of the trading volume was contributed by the GG/AAA, 54% by the AA segment and the remaining 13% by the A segment.
In the GG/AAA segment, notable trades included 2017-2018 Cagamas tranches whereby yields closed unchanged or lower at 3.45% with RM95mil changing hands.
Al Dzahab Assets bond maturing ‘06/23 saw yields close 7bps lower at 4.80% with a trading volume of RM20mil.
Also having garnered some interest was ‘01/32 Rantau Abang Capital bond which recorded a trading volume of RM10mil with yields 2bps lower at 4.87%.
Meanwhile, Ara Bintang bond maturing ‘09/19 traded at unchanged yields of 4.19% with RM10mil changing hands
Elsewhere in the AA segment, the power sector garnered some interest where notable trades included ‘05/27 YTL Power International bond which recorded a total trading volume of RM70mil with yields unchanged at 4.97%.
Also garnering interest this week was ‘07/27 Tanjung Bin O&M bond which recorded a collective trading volume of RM20mil where yields traded lower at 4.78%.
Meanwhile, Lebuhraya DUKE Fasa 3 bond maturing ‘08/29 traded at unchanged yields 4.90% with a collective trading volume of RM20mil. ‘06/30 and ‘12/31 UniTapah bonds with yields settling mixed at 4.93% and 5.02%, respectively, with RM20mil changing hands.