The TR BPAM All Bond Index recorded a minimal gain of 0.1 per cent to close at 136.53, as compared to 136.4 last Friday.
The gain was mainly contributed by the flattening of the sovereign curves. Yields of long term sovereign papers fell one basis point (bp) to six bps from the 10-year curve point and onwards.
During the week, the Government of Malaysia announced a rise in RON 95 petrol and diesel prices by 20 sen, with effect from October 2, 2014.
This move aims to narrow the country’s budget deficit and is expected to lead to a short-term increase in inflation.
Top 10 most active bonds:
The total trading volume for the top 10 most active bonds amounted to RM22.88 billion this week, 61 per cent higher than last week’s trading volume of RM14.22 billion.
The higher trading volume was mainly contributed by the MGS paper maturing in February 2015, the five-year benchmark GII and 10-year benchmark GII.
These three papers contributed to almost half of the total trading volume of the top 10 most active bonds.
Sovereign bond auction:
The tender of the re-opening of RM3.5 billion five-year benchmark GII closed on September 29, 2014 with a healthy bid-to-cover ratio of 2.359 times.
The highest, lowest and average yields are 3.835, 3.78 and 3.793 per cent respectively.
On October 3, 2014, the Government of Malaysia announced the re-opening tender for the Sukuk Perumahan Kerajaan (SPK) maturing on October 7, 2021 with an issuance size of RM1.4 billion.
The tender for this SPK will close on October 8, 2014. An additional RM2 billion will be privately placed.
New bond(s):
On October 1, 2014, Cagamas Bhd (Cagamas) issued two tranches of Conventional bonds and two tranches of sukuk with a total issuance size of RM115 million.
The one-year and two-year Cagamas Conventional bonds carry coupon rates of 3.73 per cent and 3.82 per cent respectively.
On the other hand, the three-year and five-year Cagamas sukuk offer profit rates of 3.95 and 4.15 per cent respectively.
All the bonds and sukuk are rated AAA by RAM Ratings and MARC.