Malaysian Bond Market
Local govvies’ yields were also mixed this week where all tenures decline except for the 15-year, 20-year, and 30-year yields driven by the strengthening ringgit and concerns over geopolitical tensions. At Friday’s 11am pricing, the 3-,5-, 7-, 10-, 15-, 20and 30-year benchmark MGS yields settled at 3.40%, 3.59%, 3.88%, 3.90%, 4.34%, 4.56% and 4.81% respectively.
Trading activities for the benchmark local govvies fell for another week. Trading volume for the week stood at RM5.92bil, compared to RM6.97bil in the previous week.
In the case of the secondary corporate bonds market, trading activities were higher compared to the previous week. Week to date, total trading volume was at RM1.48bil compared to previous week’s RM1.33bil. About 48% of the trading volume came from GG/AAA while 50% was from the AA segment and the balance 2% from the A segment.
In the GG/AAA segment, notable trades included ‘10/18 and ‘11/18 Cagamas bonds which closed with mixed yields of 3.64% and 3.57%, respectively, with a trading volume of RM205mil. There was also interest in ‘08/32 and ‘08/37 Tenaga Nasional bonds which closed at higher yields of 4.85% and 5.10%, respectively, and a total trading volume of RM120mil.
There was some interest in the property sector where ‘09/20 and ‘07/24 Putrajaya Holdings bonds recorded a trading volume of RM110mil and with mixed yields at 4.14% and 4.40%, respectively. Meanwhile, 2022-2047 DanaInfra tranches ended with mixed yields between 4.06% and 5.18% with RM60mil changing hands.
Elsewhere in the AA segment, notable trades included 2025-2027 MMC Corp tranches which recorded a total trading volume of RM80mil with yields unchanged at 5.28%-5.39%. There was interest in the construction sector where 2018-2021 Gamuda tranches recorded a collective trading volume of RM70mil while yields traded mixed at 4.07%-4.37%.
Also garnering interest this week were 2021-2022 Teknologi Tenaga Perlis Consortium tranches which recorded mixed yields between 4.33% and 4.44% with a collective trading volume of RM55mil. The ‘12/21 Malakoff Power bond recorded yields of 1bps lower at 4.52% with RM40mil changing hands.