Malaysian Bond Market
The local bond market remained subdued with yields on the short end rising whereas the yields on the long end fell, causing the curves to flatten towards the end of the week. Focus of the week was the new 20Y MGS auction. The auction closed with a decently strong BTC of 1.942x and averaging 4.893%. At Friday’s noon pricing, the 3-, 5-, 7-, 10-, 15-, 20- and 30-year benchmark MGS yields settled at 3.71%, 3.83%, 4.05%, 4.21%, 4.63%, 4.89% and 4.94% respectively.
Trading activities for the benchmark local govvies’ continued to ease. For the week, trading volume slowed down to RM4.7bil from RM7bil in the week prior.
Meanwhile, trading activities in the secondary corporate bond market picked up as compared to last week, with total trading volume increasing to RM1.4bil versus last week’s RM0.5bil. Some 41% of the trading volume was from GG/AAA with 55% from the AA segment and the remaining 4% from the A segment.
In the GG/AAA segment, notable trades included 2028–2033 DanaInfra Nasional Bhd tranches which closed with mixed yields between 4.69% and 5.24% with a total trading volume of RM196mil. Besides, 2027-2047 Prasarana Malaysia Bhd tranches registered mixed yields mixed between 4.59% and 5.21% with RM85mil changing hands.
Furthermore, interest was seen in ‘08/18 and ‘10/18 Cagamas Bhd bonds which closed with yields 7bps lower and 1bps higher at 3.61% and 3.76% respectively, with RM55mil traded.
Meanwhile, ‘03/24 Perbadanan Tabung Pendidikan Tinggi Nasional ended with yields 15bps higher at 4.46% with a trading volume totalling RM50mil.
Elsewhere in the AA segment, notable trades were seen in the 2022-2032 Southern Power Generation Sdn Bhd tranches which recorded a trading volume of RM155mil with closing yields mixed between 4.63% and 5.21%. Also from energy industry, ‘06/32 and ‘12/32 Jimah East Power Sdn Bhd bonds posted a trading volume of RM140mil and closed with yields 3bps higher and 1bps lower at 5.23% and 5.28% respectively.
There was some interest in 20262035 TRIplc Medical Sdn Bhd tranches which closed with yields mixed between 4.69% and 5.32%, recording a total trading volume of RM90mil. In addition, 2019-2023 Gamuda Bhd tranches registered yields mixed between 4.31% and 4.83% with RM83mil changing hands.