Looking at the Thomson Reuters BPAM All Bond Index Performance, investors stayed mostly on the sidelines throughout the week amid uncertainties pertaining to the trade war between US and China.
The MGS curve ended the week mixed, with yields eased as much as five bps around the three-year region, while yields at the 30-year region edged up three bps.
As such, the TR BPAM All Bond Index added 0.037 per cent to close at 157.668 points from 157.609 points last week.
Meanwhile, the ringgit strengthened against the greenback to end the week at 3.8630 as compared to 3.9175 last Friday.
Bank Negara Malaysia (BNM) projected that the Malaysian GDP growth for 2018 to expand by 5.5 per cent to six per cent in its annual report, following a robust growth of 5.9 per cent last year.
Strong domestic demand, global commodity prices recovery as well as favorable external demand would be the main factors supporting the forecasted growth performance.
Meanwhile, inflation has been expected to moderate to a range of two per cent to three per cent from 3.7 per cent in 2017, mainly owing to a smaller contribution from global energy and commodity prices.
The total trade volume for the top 10 bonds increased marginally to RM6.3 billion versus RR5.9 billion last week.
The 5-year benchmark MGII paper maturing on 14 April 2022 topped the list with RM1.4 billion changed hands.
Looking at sovereign auctions, on March 27, 2018, BNM announced the details for the reopening of the 3-year benchmark MGS maturing on November 30, 2021.
The reopening amount for the tender is RM3 billion. The tender closed on March 29, 2018 with a bid-to-cover ratio of 1.722 times. The highest, average and lowest yield came in at 3.464 per cent, 3.451 per cent and 3.439 per cent respectively.
Meanwhile, on new issuances, on March 26, 2018, MMC Corporation Bhd issued a 10-year Islamic Medium Term Note (IMTN) with an issuance size of RM1 billion.
The IMTN carries a profit rate of 5.70 per cent and is rated AA-IS with a stable outlook by MARC.
On the same day, Putrajaya Bina Sdn Bhd issued four IMTNs with total issuance size of RM600 million. The three-year, five-year, seven-year and 10-year IMTNs carry profit rates ranging from 4.34 per cent to 4.77 per cent and are rated AAAIS with a stable outlook by MARC.
On March 29, Cagamas Bhd issued a 3-year IMTN with a profit rate of 4.17 per cent. The RM1 billion issuance is rated AAA with stable outlook by MARC and RAM Ratings.
CIMB Bank Bd and CIMB Group Holdings Bhd each issued a 10-year non-call five-year subordinated debt with a coupon rate of 4.95 per cent with issuance size of RM700 million each.
The CIMB Group Holdings Bhd bond was rated AA with stable outlook by MARC, while the CIMB Bank Berhad subordinated debt was rated AA+/stable by MARC and AA2/stable by RAM Ratings.
Also on March 29, CIMB Thai Bank Public Company Ltd issued a 10-year non-call five-year MTN with an issuance size of RM390 million.
The MTN carries a coupon rate of 5.20 per cent and is rated AA3 with a stable outlook by RAM Ratings.