Malaysian bond market

The bond market was broadly muted with thin liquidity due to a lack of fresh catalysts.

The Malaysian Government Securities (MGS) curved saw the fiveand 10-year easing 1–2.5bps, while the three-year MGS yield rose 3bps.

The remaining benchmark yield was flat throughout the week. Meanwhile, the Government Investment Issues (GII) segment eased about 3bps across the curve, save for the 20-year GII that rose 9bps ahead of its huge auction size of Rm5.5bil in the upcoming week.

As at noon yesterday, the three-, five-, seven-, 10-, 15-, 20- and 30-year benchmark MGS yields settled at 2.26%, 2.49%, 2.71%, 2.87%, 3.33%, 3.62% and 4.01%, respectively.

Trades in the the govvies segment slid 21% week-on-week (w-o-w) to Rm13.6bil from last week’s Rm17.2bil. The MGS segment reduced 25% w-o-w to Rm7.6bil from Rm10.1bil in the previous week.

Also, the GII shrank 21% to Rm4.9bil from Rm6.2bil. Meanwhile, the short-term bill (Malaysian Treasury Bill/malaysian Islamic Treasury Bills) trading rose 15% w-o-w to Rm1.1bil from Rm934mil. Trades on Sukuk Perumahan Kerajaan (SPK) amounted to Rm20mil, similar to the prior week.

In the GG/AAA segment, Danainfra Nasional Bhd 2023–2047 tranches dominated the list with a total of Rm365mil, trading between 2.50% and 4.03%.

Meanwhile in the AA segment, some interest was seen in Southern Power Generation Sdn Bhd 2024– 2032 tranches which gathered Rm100mil at 3.37%–4.00%.

RM interest rate swap (IRS) market

The IRS saw the front end easing 1.5–4.5bps while the belly side to the back end added 0.5–2bps. The threemonth Klibor stood at 2.28%. Elsewhere, the five-year CDS rose 5.4% w-o-w to 74.39bps.