Global Markets Research

Fixed Income

Daily Market Snapshots

4 December 2013
US Treasuries
UST

Closing Yield %

Chg (bps)

2-yr

0.29

5-yr

1.40

-1

10-yr

2.78

-2

30-yr

3.85

-1

Source : Bloomberg

UST ended a tad stronger with yields

consolidating lower. The Fed bought $4.7b in
UST in 2 operations, only the second time this
year it has purchased government bond more
than once in a day. Purchases were made on
$937m of Treasuries due from November 2024
to May 2030 in its first acquisition. It also
purchased $3.73b in U.S. government debt
maturing between September 2019 and October
2020. Expect players to be tracking ISM nonmanufacturing data and new homes sales
release tonight. Better than expected data
may again see yields trending higher.

MYR Bond Market

Benchmark MGS Levels

Daily Trades: Government Bonds

MGS
Tenure

Securities

GII*

Closing

Chg
(bps)

Closing

Chg
(bps)

3-yr

3.17

-4

3.35

5-yr

3.61

-2

3.90

7-yr

4.04

4.15

10-yr

4.05

4.41

15-yr

4.25

4.55

20-yr

4.40

-5

4.60

30-yr

4.75

* Market indicative levels

MYR IRS Levels

IRS

Closing Yield (%)

Chg (bps)

1-yr

3.30

3-yr

3.57

5-yr

3.86

7-yr

4.11

10-yr

4.42

Source : Bloomberg

MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
GII
GII
GII

4/14
8/14
2/15
8/15
10/15
7/16
9/16
2/17
9/17
10/17
2/18
3/18
9/18
7/19
11/19
3/20
7/20
7/21
8/22
3/23
4/26
3/27
5/27
6/28
9/28
6/31
4/32
4/33
9/14
7/15
7/16

Source : BPAM
1

Closing

Vol

Previous

Chg

YTM

(RM mil)

YTM

Trade Date
(dd/mm/yyyy)

(bp)

3.00
2.99
3.07
3.07
3.05
3.17
3.24
3.40
3.54
3.52
3.64
3.61
3.72
3.96
4.00
4.00
4.04
4.15
4.16
4.05
4.22
4.36
4.34
4.25
4.46
4.40
4.60
4.40
3.06
3.22
3.35
Total

1
1
90
4
3
69
24
7
5
5
5
169
12
2
6
52
116
23
14
32
1
8
5
20
2
12
2
1
40
20
40
791

3.00
2.99
3.07
3.10
3.03
3.21
3.19
3.33
3.58
3.53
3.71
3.63
3.72
3.99
3.98
4.02
4.03
4.13
4.14
4.05
4.27
4.27
4.35
4.25
4.40
4.46
4.47
4.45
3.02
3.22
3.32

28/11/2013
28/11/2013
29/11/2013
02/12/2013
29/11/2013
02/12/2013
02/12/2013
02/12/2013
02/12/2013
29/11/2013
27/11/2013
02/12/2013
29/11/2013
02/12/2013
02/12/2013
02/12/2013
02/12/2013
02/12/2013
29/11/2013
02/12/2013
29/11/2013
29/11/2013
27/11/2013
02/12/2013
29/11/2013
21/11/2013
29/11/2013
25/11/2013
28/11/2013
20/11/2013
28/11/2013

0
0
0
-3
2
-4
5
7
-4
-1
-7
-2
0
-3
2
-2
1
2
2
0
-5
9
-1
0
6
-6
13
-5
4
0
3

4 December 2013

Despite lingering concerns over inflation talks, benchmark MGS rebounded with yields easing further from
previous close. We opine recently upwardly movement in yields somewhat prompted some buying on dips.
Benchmark 3- and 5-year ended 2-4 bps lower respectively. Trading volume was over RM790m done
yesterday. Trading focus seen on MGS 3/18 and MGS 7/20.
New issuance details for 10-year GII announced with issue size of RM2b. Tender for the mentioned bonds
scheduled this Thursday.
In the GII space, we saw 14s, 15s and 16s traded with collective volume of RM100m done. GII 3/14 and
GII7/16 ended at 3.06% and 3.35% respectively.
Expect local govvies to range bound today with buying on dips potentially emerging tracking yesterdays
trade focus on 5- and 7-year space.

Daily Trades: PDS / Sukuk

Rating

Securities

BATM
Danga Capital Berhad
Cagamas MBS Berhad
Malaysia Airport Holdings Berhad
HSBC Amanah Malaysia Berhad
TNB Northern Energy Berhad
TTPC
Public Bank Berhad
Public Bank Berhad
Kuala Lumpur Kepong Berhad
CIMB Bank Berhad
Imtiaz Sukuk Berhad
Imtiaz Sukuk Berhad
Jimah Energy Ventures Sdn Berhad
CIMB Group Holdings Berhad
Tanjung Bin Energy Issuer Berhad
UEM Land Holdings Berhad
KESTURI
KESTURI
KESTURI
KESTURI
KESTURI

8/14
4/15
8/15
9/16
9/17
11/17
7/16
8/17
9/18
9/22
8/21
11/15
11/17
11/18
4/20
3/24
12/17
12/23
12/24
12/25
12/26
12/27

AAA
AAA
AAA
AAA
AAA
AAA
AA1
AA1
AA1
AA1
AA+
AA2
AA2
AA3
AA3
AA3
AAAAAAAAAAAA-

Closing
Vol
YTM
(RM mil)
3.36
3.52
3.55
3.72
3.84
3.91
3.80
4.28
4.40
4.56
5.40
3.70
4.00
4.39
5.55
5.03
4.21
4.95
5.03
5.11
5.19
5.27
Total

20
10
15
15
30
10
1
10
1
10
1
10
5
10
0
2
10
5
5
5
5
5
185

YTM
3.40
3.45
3.57
3.75
3.82
3.73
3.82
4.07
4.33
4.37
5.40
3.70
3.97
4.39
5.20
4.65
4.17
4.90
4.98
5.06
5.27

Previous
Trade Date
(dd/mm/yyyy)
05/03/2012
18/11/2013
06/11/2013
29/11/2013
29/11/2013
18/07/2013
14/08/2013
25/11/2013
28/11/2013
17/10/2013
18/11/2013
10/10/2013
19/11/2013
27/11/2013
20/11/2013
09/07/2013
20/11/2013
02/12/2013
02/12/2013
02/12/2013
02/12/2013

Chg
(bp)
-4
7
-2
-3
2
18
-2
21
7
19
0
0
3
0
35
38
4
5
5
5
0

Spread
Against
IRS**
6
22
13
15
12
19
23
56
55
36
120
28
28
54
157
61
49
53
61
69
37
45

** spread against nearest indicative tenured IRS

Source : BPAM

Trading momentum in the PDS space stay soft with only RM185m trades done. Only selective names seen
emerging. We saw BATM 14 dealt at 3.36% level with RM20m changing hands. Danga 15 and Cagamas
MBS15 traded at 3.52% and 3.55% respectively.
In the bank issuance segment, we saw HSBC Amanah 17 dealt at 3.84% with RM30m done. Meanwhile
Public Bank 17 and 18 (odd amount) dealt at 4.28% and 4.40% respectively
Other notable traded include Imitiaz Sukuk maturing 2015-2017 and a slew of KESTURI bonds maturing
2023-2027.

PDS Rating Actions

Issuer

PDS Description

Premium Commerce
Berhad

RM176 million Class A Notes Series 2013-A

RM5 million Class B Notes Series 2013-A

Tropicana Corporation
Berhad

CP/MTN of up to RM500.0 million (2012/2019)

a)Tranche 1 Up to RM300.0 million guaranteed
by RHB Bank Berhad
b)Tranche 2 Up to RM200.0 million guaranteed
by AmBank (M) Berhad

Rating (Outlook)

Action

AAA/Stable
AA2/Stable

Assigned

AA2 (bg) (Stable)

Reaffirmed

AA2 (bg) (Stable)

Upgraded
from AA3 (bg)

4 December 2013

Market/Corporate News: Whats brewing

Moody's justifies positive A3 rating for Malaysia
The positive outlook for Malaysias A3 rating is based on the improved prospects for fiscal consolidation and reforms, as
well as the countrys resilient growth, benign inflation rate and current account surplus, said Moodys Investors Service.
Moodys said that while the execution of reforms would be politically and administratively challenging, it would result in
narrower fiscal deficits that would stabilise the countrys debt dynamics. Moodys noted that Malaysias sovereign rating
was supported by the Governments favourable debt structure, the depth of onshore capital markets and the high level of
domestic savings. These factors mitigated the effects of wider fiscal deficits and a higher stock of debt as compared to its
A-rated peers. Moodys also pointed out that when compared to these same countries, Malaysia had generally exhibited
faster growth, lower inflation and a more robust balance of payments over the past five years. Since the first quarter of
2012, real gross domestic product growth in Malaysia has averaged 5.1% year-on-year, outperforming other A-rated
economies, despite falling commodity prices and relatively lacklustre external demand. (Source : The Star, Moodys)
Malaysia Airports eyes stake in Istanbul airport
Malaysia Airports Holdings and TAV Havalimanlari are in separate talks with India's GMR Infrastructure to buy its 40
percent in Istanbul's Sabiha Gokcen airport. Sabiha Gokcen is one of Istanbul's two airports, located on the Asian side of
the city, and handled 15.7 million passengers in the first ten months of 2013. Malaysia Airports, which already holds 20% in
the airport, Turkish firm Limak, which owns 40%, and GMR Infrastructure acquired the operating rights to the airport for 20
years for 1.93 billion euros ($2.6 billion) in 2007. (Source : The Star)

4 December 2013
Fixed Income & Economics Research Team
Choong Yin Pheng

ChoongYP@hlbb.hongleong.com.my

Chang Wai Ming

WMChang@hlbb.hongleong.com.my

Desmond Chee Weng Luen

DesmondChee@hlbb.hongleong.com.my

Julia Tan Siew Ping

JuliaTanSP@hlbb.hongleong.com.my

Hong Leong Bank Berhad

Fixed Income & Economic Research
Global Markets
Level 6, Wisma Hong Leong
18, Jalan Perak,
50450 Kuala Lumpur.
Tel: 603 2773 0469
Fax: 603 2164 9305
Email: HLMarkets@hlbb.hongleong.com.my

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