Malaysian Bond Market

The local bonds market was rather quiet as investors were mostly away for Christmas holidays. The overall benchmark yields ended little changed on the back of thin trading. Total volume fell 75% to RM2.7bil from RM11.0bil last week with the MGS and GII segments down 78% and 65% to RM1.5bil and RM1.2bil respectively. As at Friday afternoon, the 3-, 5-, 7-, 10-, 15-, 20- and 30-year benchmark MGS yield closed at 3.63%, 3.79%, 4.00%, 4.09%, 4.48%, 4.67% and 4.90% respectively.

In tandem with the local govvies, trading activities in secondary corporate bonds slowed down 27% to RM1.4bil versus last week’s RM1.9bil. Some 43.0% of trade volume came from the GG/AAA segment while 50.6% were attributed to AA-rated papers and the remaining 6.4% from the A segment.

In the GG/AAA segment, interest was seen in DanaInfra Nasional Bhd ‘2022-2041 tranches which saw yields closing between 3.98% and 4.99% on the back of RM335mil trade volume. Meanwhile, Perbadanan Tabung Pendidikan Tinggi Nasional’s 07/26 papers saw yields easing 2.8bps to 4.38% with RM90mil changing hands. Moreover, Prasarana Malaysia Bhd’s 11/28 medium-term notes saw yields settle at 4.41% with RM30mil traded.

On the AA-rated space, flows were dominated by energy names with Sarawak Energy Bhd’s 2024-2036 notes closing firmer with yields between 4.48% and 5.02% and volume of RM200mil. Edra Energy Sdn Bhd ‘2026-2037 tranches on the other hand garnered RM117mil flows with yields ending in the range of 5.56% to 6.12%. Lastly, Celcom Networks Sdn Bhd’s 2019-2027 IMTNs closed between 4.05% and 4.72% on the back of RM70mil.

MYR Interest Rate Swap (IRS) Market As at Friday’s noon pricing, the three-month Klibor stood at 3.69%. Elsewhere, the five-year CDS rose 1.3% to 110.0. For FX enquiries, please contact: ambankfxresearch@ambankgroup. com For Fixed Income enquiries, please contact: bond-research@ambankgroup.com