Malaysian Bond Market

Trading activities eased this week compared with the previous week where benchmark local govvies registered a trading volume of RM8.1bil compared with the previous week’s value of RM13.3bil.

At Friday’s 11am pricing, the 3-, 5-, 7-, 10-, 15-, 20- and 30-year benchmark MGS yields settled at 3.30%, 3.57%, 3.81%, 3.87%, 4.32%, 4.57% and 4.76% respectively.

The secondary corporate bonds market however recorded higher trading activities compared to last week. Week to date, total trading volume was higher at RM 1.72bil compared with last week’s RM1.55bil. About 49% of the trading volume was contributed by the GG/AAA, 44% by the AA segment and the remaining 7% by the A segment.

In the GG/AAA segment, notable trades included 2017-2021 Pengurusan Air SPV tranches which recorded a total trading volume of RM235mil with yields unchanged or lower at 3.43%4%.

Also garnering interest this week was 2017-2019 Cagamas tranches recording a collective trading volume of RM195mil where yields traded mixed at 3.48%-3.95%.

Meanwhile, Prasarana Malaysia bonds maturing ‘09/27 traded at lower yields of 4.43% with a collective trading volume of RM130mil while 20192029 DanaInfra tranches garnered some interest with yields trading unchanged or lower at 3.77%-4.60% with RM70mil changing hands.

Elsewhere in the AA segment, notable trades included 2018-2020 Malayan Banking trances whereby yields closed lower at 4.38%-4.88% with RM152mil changing hands.

BGSM Management bonds maturing ‘12/18 and ‘12/20 saw yields close lower at 4.39% and 4.58%, respectively, with a trading volume of RM70mil with 2017-2022 Kesas tranches recording a trading volume of RM50mil with yields mixed at 3.91%-4.47%. Meanwhile, ‘01/20 CIMB Group bond traded at unchanged yields of 4.71% with RM60mil changing hands.