Malaysian Bond Market

In the local space, the focus was all on the reopening of RM4.5bil 20-year Government Investment Issue while RM2bil was privately placed. It posted a strong bid-to-cover of 2.307 times, the highest for 20-year tenure, with yields averaging at 4.787% despite the large-than-usual issue size.

Local govvies continued its momentum from last week as the total volume further increased to RM14.69bil this week. A buying spree was seen at the beginning of the week with yield easing an average 2 basis points (bps) across. Yet, it came to a halt after risk-off sentiment re-emerged.

As at Friday yesterday, the 3-, 5-, 7-, 10-, 15-, 20- and 30-year benchmark Malaysian Government Securities yields settled at 3.66%, 3.82%, 3.98%, 4.07%, 4.50%, 4.72% and 4.91%, respectively.

Flows for local govvies improved slightly at RM7.9bil compared with last week’s RM7.3bil.

The secondary corporate bond had a busy week as it recorded a 148% rebound from last week’s volume to RM2.14bil.

An active trading was seen on the AA segment as it contributed more than half of the total volume this week while the majority of the rest are came from the GG/AAA segment with about 3% from A segment.

In the GG/AAA segment, flows were concentrated on 2021-2023 Perbadanan Tabung Pendidikan Tinggi Nasional’s tranches with a total volume of RM180mil and ended between 3.932% and 4.151%.

Khazanah Nasional Bhd’s 08/19 paper saw RM140mil changing hands at 3.770% while 2024-2025 Pengurusan Air SPV Bhd’s tranches traded between 4.147% and 4.242% on the back of RM115mil.

For the AA-rated segment, BGSM Management Sdn Bhd’s 12/19 tranches saw yields close at 4.195% and RM86.8mil changing hands.

Secondly, Sarawak Energy Bhd’s 04/31 tranches traded RM60mil and settled at 4.795%. Lastly, Celcom Network Sdn Bhd’s 08/27 paper ended at 4.779% with RM40mil worth of trade.