The Thomson Reuters BPAM All Bond Index saw an increase of 0.131 per cent to 161.038 points from 160.827 points last Friday ahead of the announcement of the Malaysian Budget 2019.
The Malaysian ringgit strengthened against the greenback to close at 4.1665.
Malaysia’s GDP is forecasted to grow 4.9 per cent in 2019.
RM314.5 billion will be allocated for Budget 2019, 8.3 per cent higher as compared to RM290.4 billion for 2018.
A national Debt Management Office will also be established to review and manage government debts and liabilities as well as to monitor new debt issuance.
US Treasuries saw losses across the board, but the trend reversed on Thursday followed by President Trump’s positive comments on the relationship with China. The improved trade sentiment was also proven by the gains recorded in the US equity market.
The Treasury’s borrowing is expected to reduce to US$425 billion in the fourth quarter.
However, the total debt issuance will be totalled to US$1.34 trillion from US$546 billion in 2017, partly due to tax cuts and increase in government spending to facilitate the economic growth in the US.
The top 10 most active bonds increased to RM10.2 billion from RM4.9 billion.
The newly-auctioned 10-year benchmark GII topped the list, which recorded a trade volume totalled RM1.9 billion, while the 10-year benchmark MGS saw a total of RM1.5 billion traded.
On October 26, 2018, BNM announced the tender details for the reopening of the 10-year benchmark GII maturing on October 31, 2028 with an issuance size of RM4 billion. The auction recorded the highest, average and lowest yields at 4.32, 4.313 and 4.29 per cent respectively.
On October 29, 2018, Public Bank Bhd issued a RM1 billion 10-non-call-5-year subordinated notes with a coupon rate of 4.70 per cent.
On October 30, 2018, Malayan Banking Bhd issued a one-year discount bond with an issue size of RM13.8 million.
On October 31, 2018, Lembaga Pembiayaan Perumahan Sektor Awam issued five tranches IMTN amounted to RM3 billion with tenures ranging from five-year to 30-year and profit rates ranging from 4.05 to 5.1 per cent.
Perbadanan Kemajuan Negeri Selangor issued two tranches of three-year and five-year IMTNs with a combined issue size of RM200 million.
Telekom Malaysia Bhd issued a 10-year IMTN amounted to RM800 million with a profit rate of 4.68 per cent.
UEM Sunrise Bhd issued three tranches of three, five and 7-year IMTNs with total issue size of RM700 million. The profit rates of the IMTNs ranging from 4.85 to 5.15 per cent and are rated AA- IS with stable outlook by MARC.
On November 1, 2018, Pelabuhan Tanjung Pelepas Sdn Bhd issued four tranches of IMTNs with RM240 million issue size in total.
On November 2, 2018, Fortune Premiere Sdn Bhd issued five and seven-year IMTNs with total issuance size of RM330 million.