Malaysian Bond Market

Local govvies’ yields rose across all tenures except the 30-year yield as the rather hawkish tone of BNM’s MPC statement caused some selling pressure. At Friday’s 11am pricing, the 3-, 5-, 7-, 10-, 15-, 20- and 30-year benchmark Malaysian Government Securities yields settled at 3.52%, 3.77%, 4.02%, 4.06%, 4.64%, 4.72% and 4.97% respectively.

Trading activities for the benchmark local govvies declined this week. Trading volume for the week stood at RM8.4bil, compared to RM10.1bil in the previous week.

In the case of the secondary corporate bonds market, trading activities increased compared to the previous week. Week to date, total trading volume was at RM1.39bil compared to previous week’s RM0.59bil. About 23% of the trading volume came from GG/AAA while 66% was from the AA segment and the balance 11% from the A segment.

In the GG/AAA segment, notable trades included 2020-2024 Projek Lebuhraya Usahasama tranches which closed with yields mixed between 4.06% and 4.36% with a trading volume of RM75mil. There was also interest in 2018-2024 Cagamas tranches which closed with higher yields 3.73%–5.52% and a total trading volume of RM55mil.

Meanwhile, ‘07/28 and ‘07/29 Aquasar Capital bonds garnered interest, having recorded a trading volume of RM50mil, closed with yields unchanged at 4.67% and 4.75%, respectively. Furthermore, ‘10/22 Rantau Abang Capital bond ended with yields 7bps higher at 4.21% with RM40mil changing hands.

Elsewhere in the AA segment, notable trades were seen in 20172026 BGSM Management tranches which recorded a total trading volume of RM190mil with mixed yields between 3.94% and 4.89%.

Meanwhile, 2025-2029 Sarawak Energy tranches recorded a trading volume of RM145mil and closed with yields higher at 4.63%–4.92%. Also attracting interest this week were 2025-2032 Konsortium Lebuhraya Utara-Timur (KL) tranches which recorded yields unchanged or higher at 4.69%– 5.17% with a collective trading volume of RM85mil. In addition, 2018-2026 Anih Berhad tranches recorded mixed yields of 4.07%4.73% with RM44mil changing hands.