Malaysian Bond Market

The local bond market started the month relatively quiet but yields inched up towards the end of the week as UST 10-year yields rose to a high, triggering bearish sentiment towards the Emerging Market which pushed up local govvies’ yields across the curve.

As at yesterday noon, the 3-, 5-, 7-, 10-, 15-, 20- and 30-year benchmark Malaysian Government Securities yields settled at 3.62%, 3.79%, 4.00%, 4.11%, 4.54%, 4.71% and 4.92%, respectively.

Flows for local govvies were slow at RM8.1bil compared to last week’s RM11.9bil.

Meanwhile, trading activities at the corporate bond space decreased to RM2.2bil versus last week’s RM2.8bil. Some 66% of the trading volume was from the GG/AAA segment, with 30% from the AA segment and the remaining 4% from the A segment.

In the GG/AAA segment, strong interest was seen for Prasarana Malaysia Bhd’s 2020-2042 tranches, which saw yields mixed between 3.88% and 4.97% with RM575mil traded.

Interest was also seen for DanaInfra Nasional Bhd’s 2024-2047 papers, with yields closing mixed between 4.11% and 5.06% on the back of RM455mil flows.

Also, Lembaga Pembiayaan Perumahan Sektor Awam’s 2022-2032 papers recorded trades amounting to RM120mil, with yields easing to a range between 4.00% and 4.65%.

Meanwhile, Jambatan Kedua Sdn Bhd’s 05/25 bond saw yields easing 4 bps to 4.21%, with RM90mil changing hands.

For AA-rated papers, interest continued to be seen in the energy sector, with Sarawak Energy Bhd’s 2019-2035 tranches posting a trade volume of RM70mil with yields closing lower at between 4.07% and 4.95%.

Besides, CIMB Thai Bank Public Co Ltd’s 2019 papers were seen traded 5 bps lower at 4.55% on the back of RM60mil flows.

Meanwhile, interest was also seen in TSH Sukuk Ijarah Sdn Bhd’s 03/22 and 04/23 papers, which closed at 4.71% and 4.78%, respectively, with RM50mil traded.

Lastly, ‘07/20 Krung Thai Bank Public Co Ltd saw yields close unchanged at 4.70% with RM42mil traded.