Malaysian Bond Market
Local govvies’ yields rose across all tenures except 15- and 20- year yields amid the stronger ringgit and some buying flow into the market. At Friday’s 11am pricing, the 3-, 5-, 7-, 10-, 15-, 20- and 30-year benchmark MGS yields settled at 3.48%, 3.70%, 3.96%, 4.01%, 4.55%, 4.70% and 4.98% respectively.
Trading activities for the benchmark local govvies climbed for another week. Trading volume for the week stood at RM10.10bil, compared to RM9.86bil in the previous week.
In the case of the secondary corporate bonds market, trading activities softened compared to the previous week. Week to date, total trading volume was at RM0.59bil compared to previous week’s RM1.50bil. About 37% of the trading volume came from GG/AAA while 60% was from the AA segment and the balance 3% from the A segment.
In the GG/AAA segment, notable trades included ‘01/25 and ‘01/32 Projek Lebuhraya Usahasama bonds which closed with yields 6bps higher at 4.41% and 4.94%, respectively with a trading volume of RM50mil. There was also interest in ‘08/19 Rantau Abang bond which closed with 1bps lower yields of 3.92% and a total trading volume of RM30mil. Meanwhile, ‘05/19 Aman Sukuk bond garnered interest, having recorded a trading volume of RM30mil, closed with yields unchanged at 4.09%.
Furthermore, ‘10/19 HSBC Amanah Malaysia bond ended with yields 3bps lower at 4.16% with RM25mil changing hand.
Elsewhere in the AA segment, notable trades were seen in 20172019 UEM Sunrise tranches which recorded a total trading volume of RM42mil with mixed yields between 4.04% and 4.40%. Meanwhile, ‘10/26 and ‘08/27 Celcom Networks bonds recorded a trading volume of RM40mil and closed with yields higher at 5.02% and 5.05%, respectively. Also attracting interest this week were ‘10/21 and ‘10/22 WCT Holdings bonds which recorded yields higher at 5.09% and 5.17% respectively, with a collective trading volume of RM36mil.
In addition, 2019-2026 UMW Holdings tranches recorded yields unchanged or lower between 4.72%4.99% with RM31mil changing hands.