Malaysian Bond Market
Local govvies’ yields rose across the curve largely on the back a stronger ringgit following healthy export data. At Friday’s 11.30am pricing, the 3-, 5-, 7-, 10-, 15-, 20- and 30-year benchmark MGS yields settled at 3.41%, 3.64%, 3.93%, 3.97%, 4.43%, 4.62% and 4.88% respectively.
Trading activities for the benchmark local govvies gained some traction this week. Trading volume for the week stood at RM9.27bil compared with RM7.91bil in the previous week.
In the case of the secondary corporate bond market, trading activities rose compared to the previous week. Week to date, total trading volume was at RM1.68bil compared to previous week’s RM1.21bil. About 41% of the trading volume came from GG/ AAA while 48% was from the AA segment and the balance 11% from the A segment.
In the GG/AAA segment, notable trades included 2024-2044 DanaInfra Nasional tranches which closed with mixed yields between 4.27% and 5.21% with a total trading volume of RM348mil. There was also interest in 2020-2024 Cagamas tranches which closed with mixed yields 3.96%–4.95% with a total trading volume of RM105mil. Meanwhile, 2019-2024 Pengurusan Air SPV tranches also garnered interest, having recorded a trading volume of RM50mil and closed with yields higher or lower between 3.64% and 4.26%. Furthermore, ‘12/21 and ‘05/26 Putrajaya Holdings bonds ended with yields higher by 4bps to 4.30% and lower by 2bps to 4.53% respectively, with RM45mil changing hands
Elsewhere in the AA segment, notable trades were seen in ‘08/18 and ‘05/27 YTL Power International bonds which recorded a total trading volume of RM182mil with unchanged or higher yields at 4.11% and 4.90%, respectively. Meanwhile, 2031-2039 Lebuhraya DUKE Fasa 3 tranches which recorded mixed yields between 5.10% and 5.53% with a collective trading volume of RM94mil. Also attracting interest this week were 2021-2026 UMW Holdings tranches, recording a trading volume of RM60mil and closed with yields lower between 4.60% and 4.96%. In addition, some interest was seen in the banking sector where ‘09/18 and ‘01/19 Malayan Banking bonds recorded higher yields by 18bps to 4.54% and 12bps to 4.77% with a total trading volume of RM57mil changing hands.