Malaysian Bond Market
Local govvies’ yields fell between the 3-year yield and 10-year yield while the longer end of the curve rose as inflation in November eased for the second consecutive month to 3.4%y/y. At Friday’s 11am pricing, the 3-, 5-, 7-, 10-, 15-, 20- and 30-year benchmark MGS yields settled at 3.35%, 3.59%, 3.91%, 3.95%, 4.42%, 4.61% and 4.88% respectively.
Trading activities for the benchmark local govvies was lower again this week. Trading volume for the week stood at RM4.73bil compared to RM5.78bil 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 RM1.41bil compared to previous week’s RM1.26bil. About 28% of the trading volume came from GG/AAA while 72% was from the AA segment and the balance 1% from the A segment.
In the GG/AAA segment, notable trades included ‘09/20 Cagamas bond which closed with yields higher by 13bps at 4.10% with a total trading volume of RM140mil. There was also interest in ‘03/22 and ‘03/24 Al Dzahab Assets bonds which closed with unchanged or lower yields at 4.56% and 4.64%, respectively, with a total trading volume of RM35mil.
Meanwhile, ‘03/32 and ‘11/47 DanaInfra Nasional bonds also garnered interest, having recorded a trading volume of RM35mil and closed with yields unchanged or higher at 4.84% and 5.33%, respectively. Furthermore, ‘01/26 and ‘01/34 Projek Lebuhraya Usahasama bonds ended with yields mixed at 4.54 and 4.99% respectively, with RM30mil changing hands.
Elsewhere in the AA segment, notable trades were seen in 2018-2022 Malakoff Power tranches which recorded a total trading volume of RM75mil with unchanged or lower yields between 4.22%-4.58%.
Meanwhile, 2018-2032 Sarawak Energy tranches recorded mixed yields between 3.87% and 5.28% with a collective trading volume of RM71mil.
Also attracting interest this week were 2018-2022 Public Bank tranches, recording a trading volume of RM69mil and closed with yields unchanged or lower between 4.24% and 4.59%. In addition, there was some interest in 2019-2025 BGSM Management tranches which recorded mixed yields at 4.4%-4.8% with a total trading volume of RM65mil changing hands.