Malaysian Bond Market
Local govvies yields declined across all tenors for the week led by buying flows pushing prices higher as the ringgit strengthened following Bank Negara’s MPC meeting. At Friday’s 12pm pricing, the 3-,5-, 7-, 10-, 15-, 20- and 30-year benchmark MGS yields settled at 3.30%, 3.50%, 3.78%, 3.83%, 4.27%, 4.47% and 4.73% respectively.
Trading activities rose this week compared to the previous week where benchmark local govvies registered a trading volume of RM16.05bil compared to the previous week’s value of RM10.5bil.
Meanwhile, the secondary corpo- rate bonds market recorded lighter trading activities compared to last week. Week to date, total trading volume was higher at RM1.9bil compared to last week’s RM2.96bil. About 67.5% of the trading volume was contributed by the GG/AAA, 29.6% by the AA segment and the remaining 2.9% by the A segment.
In the GG/AAA segment, notable trades included 2024-2039 DanaInfra Nasional Berhad tranches which saw yields closed mixed between 4.27%4.96% with a trading volume of RM320mil. There was also interest in 2021-2037 Cagamas Bhd tranches which closed with yields mixed at 3.45%-4.94% with a total trading volume of RM230mil. Also having garnered some interest was ‘08/32 and ‘08/37 Tenaga Nasional Bhd bonds which recorded a trading volume of RM56mil with no yields changed at 4.78% and 5.07% respectively. Meanwhile, 2022-2047 Lembaga Pembiayaan Perumahan Sektor Awam tranches closed mixed with yields at 4.08%-5.18% with RM168mil changing hands.
Elsewhere in the AA segment, notable trades included 2022-2031 Sarawak Energy Bhd tranches which recorded a total trading volume of RM110mil with yields lower or unchanged at 4.32%-4.98%. Also garnering interest this week was ‘05/27 YTL Power International Bhd which recorded a trading volume of RM110mil with unchanged yields at 4.88%. Meanwhile, ‘10/21 and ‘10/23 UMW Holdings Bhd recorded at lower yields at 4.65% and 4.83% respectively with a collective trading volume of RM50mil. Perbadanan Kemajuan Negeri Selangor bonds maturing ‘08/18 recorded yields lower by 2bps at 4.32% with RM40mil changing hands.