Malaysian Bond Market
Local govvies’ yields fell marginally across the curve between 1-2bps led by the resilient ringgit. During the week, the 15.5-year GII new issue auction saw RM2bil issued and garnered a decent BTC ratio of 1.775x. At Friday’s 11.30am pricing, the 3-, 5-, 7-, 10-, 15-, 20- and 30-year benchmark MGS yields settled at 3.39%, 3.63%, 3.92%, 3.96%, 4.41%, 4.61% and 4.87% respectively.
Trading activities for the benchmark local govvies was lower this week. Trading volume for the week stood at RM5.78bil compared to RM9.27bil in the previous week.
In the case of the secondary corporate bond market, trading activities eased compared to the previous week. Week to date, total trading volume was at RM1.26bil compared to previous week’s RM1.68bil. About 28% of the trading volume came from GG/ AAA while 60% was from the AA segment and the balance 12% from the A segment.
In the GG/AAA segment, notable trades included 2024-2031 Projek Lebuhraya Usahasama tranches which closed with lower yields between 4.44% and 4.90% with a total trading volume of RM112mil. There was also interest in 2018-2020 Cagamas tranches which closed with lower yields at 3.40%–4.00% with a total trading volume of RM71mil.
Meanwhile, ‘07/29 and ‘11/47 DanaInfra Nasional bonds also garnered interest, having recorded a trading volume of RM25mil and closed with yields mixed at 4.22% and 4.31%, respectively. Furthermore, ‘11/20 and ‘11/21 Manjung Island Energy bonds ended with yields higher by 4bps to 4.22% and 4.31% respectively, with RM20mil changing hands.
Elsewhere in the AA segment, notable trades were seen in 2023-2027 YTL Power International tranches which recorded a total trading volume of RM95mil with mixed yields between 4.57%-4.90%.
Meanwhile, 2018-2022 Malakoff Power tranches which recorded unchanged or higher yields between 4.23% and 4.58% with a collective trading volume of RM64mil. Also attracting interest this week were 2033-2037 Lebuhraya Duke Fasa 3 tranches, recording a trading volume of RM60mil and closed with yields unchanged or higher between 5.20% and 5.42%.
In addition, there was some interest in UEM Sunrise Bhd bonds where ‘12/18 and ‘04/20 recorded unchanged or higher yields at 4.34% and 4.52%, respecitvely with a total trading volume of RM57mil changing hands.