The TR BPAM All Bond Index ended the week at 133.82 point from 133.72 registered last week, translating into 0.07 per cent growth. Malaysian Government Securities (MGS) yield movement was mostly mixed across all tenure points. In the meantime, most of the PDS curves flattened over the course of the week as market players braced for imminent interest rate hike by Bank Negara Malaysia next month.
On Thursday, European Central Bank cut its benchmark interest rate by 10 basis ints to bring its main refinancing rate to 0.15 per cent. Meanwhile, in an unprecedented move, European Central Bank also cut its deposit facility rate to minus 0.1 per cent as well as introducing a series of unconventional measures to resolve the deflation risk that has plagued the euro area.
Malaysia reported a growth of 18.9 per cent in exports that reached RM66.37 billion in April as compared with same month last year while its imports increased by five per cent to RM57.5 billion in the same period. As a result, trade surplus stood at RM8.87 billion. The stellar export number has beaten market consensus and heightened the possibility of interest rate hike next month.
Top 10 most active bonds:
Trading volume for the top 10 active bonds plummeted massively by 41 per cent to a mere RM7.9 billion from RM13.45 billion recorded last week.
Short-term Bank Negara Malaysia papers garnered more than half of the top 10 trading volume.
New bond(s):
On June 6, 2014, Cagamas Bhd issued a RM40 million worth of two-year bond with coupon rate of 3.8 per cent. The Cagamas bond is rated AAA by both RAM Ratings and Malaysian Rating Corporation Bhd.