Malaysian Bond Market
Local govvies yields declined across all tenors for another week led by strong buying flows on the 10-year MGS amid rumours of the stock being newly included into JP Morgan’s Global Bond EM Index. At Friday’s 3pm pricing, the 3-,5-,7-, 10-, 15-, 20- and 30-year benchmark MGS yields settled at 3.35%, 3.56%, 3.87%, 3.94%, 4.32%, 4.54% and 4.74% respectively.
Trading activities reduced this week compared to the previous week where benchmark local govvies registered a trading volume of RM10.5bil compared to the previous week’s value of RM12.3bil.
Meanwhile, the secondary corporate bonds market recorded heavier trading activities compared to last week. Week to date, total trading volume was higher at RM 2.96bil compared to last week’s RM1.52bil. About 32% of the trading volume was contributed by the GG/AAA, 65% by the AA segment and the remaining 3% by the A segment.
In the GG/AAA segment, notable trades included 2017-2024 Cagamas tranches which saw yields close unchanged or lower between 3.58%4.32% with a trading volume of RM219 million.
There was also interest in 2021-2037 DanaInfra Nasional Berhad tranches which closed with yields mixed at 4.03%-4.96% with a total trading volume of RM85mil. Also having garnered some interest was ‘10/22 and ‘01/32 Rantau Abang Capital bonds which recorded a trading volume of RM85 million with yields lower by 5bps at 4.16% and higher by 1bps at 4.88% respectively.
Meanwhile, 2018-2030 Prasarana Malaysia tranches closed mixed with yields at 3.50%-4.74% with RM 78 million changing hands.
Elsewhere in the AA segment, notable trades included 2017-2026 BGSM Management tranches which recorded a total trading volume of RM1014 million with yields lower at 4.15%-4.95%. Also garnering interest this week were 2021-2025 Sarawak Energy tranches which recorded a collective trading volume of RM130 million where yields traded mixed at 4.34%-4.60%. Meanwhile, 2019-2022 Imtiaz Sukuk II tranches recorded at lower or unchanged yields of 4.27%-4.54% with a collective trading volume of RM124 million. YTL Power International bonds maturing ‘03/23 and ‘05/27 recorded yields lower by 1bps at 4.56% and lower by 4bps at 4.90% respectively with RM110 million changing hands.