BOND+SUKUK INFORMATION EXCHANGE BIXMALAYSIA.COM - NEWS UPDATE 25 June 2020
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BOND+SUKUK INFORMATION EXCHANGE BIXMALAYSIA.COM NEWS UPDATE 25 June 2020
US Yield Daily Yield Weekly Yield Monthly Yield YTD Yield
MARKET Treasury 24 June 20
3 YEAR 0.21
Change
bps
-1
23 June 20
0.22
Change
bps
-2
17 June 20 Change 22 May 20
0.23
bps
0 0.21
Change
bps
-141
31 Dec 19
1.62
5 YEAR 0.33 0 0.33 -1 0.34 -1 0.34 -136 1.69
SUMMARY 7 YEAR
10 YEAR
0.52
0.69
-2
-3
0.54
0.72
-3
-5
0.55
0.74
1
3
0.51
0.66
-131
-123
1.83
1.92
MGS Yield Daily Yield Weekly Yield Monthly Yield YTD Yield
24 June 20 Change 23 June 20 Change 17 June 20 Change 22 May 20 Change 31 Dec 19
bps bps bps bps
3 YEAR 2.27 -1 2.28 -6 2.33 0 2.27 -71 2.98
5 YEAR 2.52 -2 2.54 -3 2.55 4 2.48 -63 3.15
7 YEAR 2.71 -1 2.72 -2 2.73 7 2.64 -59 3.30
10 YEAR 2.89 -1 2.90 -2 2.91 9 2.80 -41 3.30
GII Yield Daily Yield Weekly Yield Monthly Yield YTD Yield
24 June 20 Change 23 June 20 Change 17 June 20 Change 22 May 20 Change 31 Dec 19
bps bps bps bps
3 YEAR 2.34 0 2.34 -4 2.38 2 2.32 -72 3.06
5 YEAR 2.52 -1 2.53 -5 2.57 4 2.48 -67 3.19
7 YEAR 2.73 -4 2.77 -6 2.79 0 2.73 -57 3.30
10 YEAR 2.88 -2 2.90 -1 2.89 11 2.77 -54 3.42
• 1 bps = 0.01% AAA Yield Daily Yield Weekly Yield Monthly Yield YTD Yield
• Increase in Yield = Decrease 24 June 20 Change 23 June 20 Change 17 June 20 Change 22 May 20 Change 31 Dec 19
bps bps bps bps
in the bond price/value 3 YEAR 2.92 0 2.92 -1 2.93 5 2.87 -63 3.55
5 YEAR 3.09 -1 3.10 0 3.09 8 3.01 -58 3.67
Source: US Treasury, BNM & 7 YEAR 3.24 -1 3.25 -1 3.25 6 3.18 -52 3.76
10 YEAR 3.42 -1 3.43 0 3.42 7 3.35 -47 3.89
BIX MalaysiaTHE STAR
NEWS Malaysia's CPI falls 2.9% in May
UPDATE Malaysia's consumer price index (CPI) fell 2.9% in May from a year earlier,
marking a third straight month of decline. The result matched April's
decline, and was slightly more than the median estimate of a 2.8% decline
by a Bloomberg survey of economists. The drop in CPI was mainly
attributed to a decline in fuel prices, according to the Department of
Today's headlines of interest and Statistics Malaysia. Excluding fuel, the CPI registered 0.1% growth in May,
summaries as extracted from the as compared to 0.2% in April. CPI without fuel comprises all goods and
international and local media. services except unleaded petrol RON95, unleaded petrol RON97 and
diesel.
"The lower average price of RON95 in April 2020 which recorded RM1.30
per litre as compared to RM2.08 in May 2019 contributed to the decrease
of the transport and overall index. "In addition, the average price of
RON97 decreased to RM1.60 per litre as compared to RM2.74 while diesel
declined to RM1.45 per litre from RM2.18 in the corresponding month of
the preceding year," said Chief Statistician Mohd Uzir Mahidin. Sub-
indices that showed declining prices in May included transport, housing
water, electricity, gas and other fuels, clothing and footwear, and
furnishing, household equipment and routine household maintenance.
Meanwhile, growth sub-indices were food and non alcoholic beverages,
miscellaneous goods and services, communication, health and
educations. On a month-on-month basis, the May CPI grew 0.3% from
April.THE EDGE MARKETS
NEWS May's deflation not a reason for another OPR cut — economists
UPDATE Malaysia recorded yet another deflation in May — the third monthly
deflation in a row — but this is no reason for Bank Negara Malaysia to
further cut the Overnight Policy Rate (OPR), said economists. The view is
that the current low OPR of 2%, coupled with large-scale stimulus
Today's headlines of interest and packages and other measures introduced by the Government, have
provided ample support for the country’s economy amid the COVID-19
summaries as extracted from the crisis.
international and local media.
“There is a surge in risk appetite despite the economic and COVID-19
related risks. As such, we think this warrants caution in expecting further
rate cuts,” wrote UOB Economics & Markets Research’s senior economist
Julia Goh and economist Loke Siew Ting in a note today. Bank Negara’s
Monetary Policy Committee (MPC) is scheduled to meet for a fourth time
this year on July 6 and 7, to review the OPR. At its previous meeting in
May, the MPC trimmed the key interest rate by 50 basis points (bps) —
the most since February 2009 — after making two successive rate cuts of
25bps each in March and Jan.
The total 100bps OPR cut has left investors searching for higher returns.
This led to a spike in domestic retail participation in the local bourse.
“Local retail buying rose 169% from RM8.5 billion last December to
RM22.8 billion in May,” Goh and Loke noted.THE STAR
NEWS Malaysia's debt limit can be raised if necessary, says MIDF group MD
While Malaysia's debt-to-gross domestic product (GDP) ratio may hit the
UPDATE 55 per cent statutory limit by year-end, the cap is "self-imposed” and can
be changed through parliament if deemed necessary for the people's
well-being, said Malaysian Industrial Development Finance (MIDF) group
managing director Datuk Charon Wardini Mokhzani. Technically, the
Today's headlines of interest and legislative body could increase the debt limit but this depended on what
summaries as extracted from the it had to say and Malaysia would wait for the decision, he said.
international and local media.
"Technically, we can go higher as the ceiling is self-imposed through an
act, where they can change it through parliament (such as increasing) it
to 60-65 per cent depending on the needs of the country presently,” he
said during a webinar on "Surviving and Embracing Malaysia’s New
Normal” today. Yesterday, Finance Minister Tengku Datuk Seri Zafrul
Abdul Aziz said the country's debt level, currently at 52 per cent, might
reach 55 per cent later this year due to measures implemented under the
Prihatin Rakyat Economic Stimulus Package (PRIHATIN) and the National
Economic Recovery Plan (PENJANA) that were aimed at saving lives and
livelihoods as well as stimulating the economy.
According to MIDF, positively impacted sectors in the new normal era are
information technology infrastructure, equipment manufacturer, software
developer, cloud-based, glove, personal protective equipment, medical
equipment, online education provider and e-commerce.REUTERS
NEWS Equities sink, bonds edge higher on fears of pandemic wave
UPDATE Rising concerns about a surge in coronavirus infections sent global
equities and oil prices lower on Wednesday and pushed investors into
perceived safe havens such U.S. Treasuries and gold, which hovered near
its highest level in eight years. Several U.S. states are posting record
infections and the death toll in Latin America exceeded 100,000,
Today's headlines of interest and according to a Reuters tally. The New York Times reported the European
summaries as extracted from the Union was prepared to bar U.S. travelers, putting it in the same category
international and local media. as Brazil and Russia.
Adding to the gloom, European Central Bank chief economist Philip Lane
warned the euro zone economy would need a long time to recover
despite a string of solid data in recent days. The United States is
considering tariffs on $3.1 billion of exports from Britain, France, Spain
and Germany, Bloomberg news reported, citing a notice published by the
office of the U.S. Trade Representative. "With rising daily COVID-19 cases
in the U.S. remaining front page news, the headlines are proving to be a
weighty burden to bear this morning," Stephen Innes, chief global market
strategist at AxiCorp, said.
MSCI's gauge of stocks across the globe shed 2.33% following broad
declines in Europe and Asia. The MSCI index has treaded water in recent
weeks after jumping more than 40% from March lows on hopes the worst
of the pandemic was over.DISCLAIMER No Offer The information provided and services described in the BIX website are of a general nature, are not offers for investment and are not intended to be personalised financial advice to investor. The information provided in the BIX website is not intended to be a substitute for professional advice. Reliance should not be placed on the BIX website and you should seek appropriate personalised financial advice from a qualified professional to suit your individual circumstances and risk profile. Website Information BIX website is a publisher of content supplied by third parties. While every effort is made to ensure the information on the BIX website is up-to-date and correct, the Company makes no representations or warranties of any kind, express or implied, about the accuracy, reliability, completeness, suitability or availability of the BIX website or the information provided on the BIX website from the sources. The information on the BIX website is subject to change at any time. Any reference on this BIX website to historical information and performance may not necessarily be a good guide to future performance. You are solely responsible for any actions you take or do not take by relying on such information. To the full extent legally allowable, the directors, associates, vendors and staff of the Company expressly disclaim all and any liability and responsibility to any person in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this BIX website. Third party products and services Through the BIX website you may be able to link to other websites which are not under the control of the Company. The Company has no knowledge of or control over the nature, content, and availability of those websites. The Company does not sponsor, recommend, or endorse anything contained on these linked websites. The Company does not accept any liability of any description for any loss suffered by you by relying on anything contained or not contained on these linked websites. The Company accept no responsibility or liability for the content, use or availability of such websites. The Company shall not be liable for any and all liability for the acts, omissions and conduct of any third parties in connection with or related to your use of this site and/or our services.
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