Malaysian Bond Market

The local bond market has remained muted as investors demanded higher yields due to the weakening ringgit. The local govvies’ yields fell across the curve with the exception of the 10-year MGS yields which rose 1bps to 4.23%. At Friday’s noon pricing, the 3-, 5-, 7-, 10-, 15-, 20and 30-year benchmark MGS yields settled at 3.62%, 3.83%, 4.05%, 4.21%, 4.64%, 4.89% and 4.94% respectively.

Trading activities for the benchmark local govvies’ picked up withtrading volume rising to RM6.3bil for the week from RM4.7bil in the week prior.

Meanwhile, trading activities in the secondary corporate bond market slowed down with total trading volume declining to RM0.5bil versus last week’s RM1.4bil. Some 27% of the trading volume was from GG/AAA with 61% from the AA segment and the remaining 12% from the A segment.

In the GG/AAA segment, notable trades included ‘02/19 and ‘09/19 Cagamas Bhd bonds which recorded with yields mixed between 3.88% and 4.18%, with a total trading volume of RM50mil. Besides, 2046-2048 DanaInfra Nasional Bhd tranches registered mixed yields between 5.22% and 5.21% with RM30mil changing hands. Furthermore, interest was seen in ‘12/21 and ‘02/23 Prasarana Malaysia Bhd bonds which closed with yields mixed between 4.20% and 4.28% respectively, and RM20mil traded. Meanwhile, ‘06/22 Genting Capital Bhd ended with yields 7bps higher at 5.10% with a trading volume totalling RM11mil.

Elsewhere in the AA segment, notable trades were seen in the 2026-2035 Southern Power Generation Sdn Bhd tranches which recorded a trading volume of RM50mil with yields mixed between 4.88% and 5.39%. Besides that, interest was seen in 2018 Perbadanan Kemajuan Negeri Selangor tranches posted a trading volume of RM50mil and closed with yields mixed between 4.23% and 4.38%. Meanwhile, ‘10/18 and ‘11/18 Public Bank Bhd bonds, which closed with yields mixed between 4.34% and 4.38%, recorded a total trading volume of RM35mil. Furthermore, ‘01/22 and ‘06/26 Sarawak Energy Bhd bonds registered yields mixed between 4.60% and 4.85% with RM30mil changing hands.