Malaysia bond market weekly updates (6 August 2017)

Following the slightly dovish tone from the US Federal Reserve in its July FOMC meeting held last week, investors stayed mostly on sidelines throughout the week as there were lack of fresh catalysts.

Meanwhile, the ringgit strengthened against the greenback to close at 4.2785 from 4.28 last Friday on the back of weakened USD following the mixed US data released during the week.

Over to the ringgit market, the MGS curve shed 1 to 9 bps across all tenures, except for the belly which saw yields edged higher by 1bp.

As a result, the Thomson Reuters BPAM All Bond Index posted a gain of 0.084 per cent to end the week at 153.601 points from the previous week at 153.472 points.

On August 4, 2017, Department of Statistics released the external trade statistics for the month of June 2017.

Exports grew 10 per cent to RM73.1 billion while imports expanded by 3.7 per cent to RM63.2 billion from a year ago. As a result, trade surplus was recorded at RM9.9 billion.

Top 10 most active bonds:

The total trade volume of the top 10 most active bonds increased to RM5.7 billion from RM5.4 billion last week. The three-year benchmark MGII maturing on April 15, 2020 topped the list with RM1.1 billion changed hands.

Sovereign Auction(s):

On August 1, 2017, Bank Negara Malaysia announced the details for the new 20-year benchmark MGII maturing on August 4, 2037.

The issue amount for the tender is RM2.5 billion. The tender closed on August 3, 2017 with a bid-to-cover ratio of 1.784 times. The highest, average and lowest yield came in at 4.783, 4.755 and 4.723 per cent respectively.

New Issuance(s):

On August 1, 2017, Malayan Bhd issued a one-year zero coupon senior bond with an issuance size of RM21 million. The bond is rated AAA with stable outlook by RAM Ratings.

On August 2, 2017, Senari Synergy Sdn Bhd issued a RM20 million one-year Islamic Medium Term Notes (IMTN) with a profit rate of 4.5 per cent.

The IMTN is rated AAAIS(fg) with a stable outlook by , reflecting the unconditional and irrevocable financial guarantee provided by Danajamin Nasional Bhd.

On August 3, 2017, Public Islamic Bank Bhd issued a 10-non-call-five year Basel III-compliant Subordinated with an issuance size of RM500 million.

The sukuk carries a profit rate of 4.65 per cent and is rated AA1 with stable outlook by RAM Ratings.

On the same day, Tenaga Nasional Bhd issued two tranches of sukuk amounted to RM2 billion. The 15-year and 20-year IMTNs carry a profit rate of 4.95 per cent and 5.18 per cent respectively. The IMTNs are rated AAA with stable outlook by RAM Ratings.

Source: Borneo Post Online

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