BOND+SUKUK INFORMATION EXCHANGE BIXMALAYSIA.COM - NEWS UPDATE 10 May 2021
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BOND+SUKUK INFORMATION EXCHANGE BIXMALAYSIA.COM NEWS UPDATE 10 May 2021
US Yield Daily Yield Weekly Yield Monthly Yield YTD Yield
MARKET Treasury 07 May 21
3 YEAR 0.29
Change
bps
-3
06 May 21
0.32
Change
bps
-6
30 Apr 21
0.35
Change
bps
-5
07 Apr 21
0.34
Change
bps
12
31 Dec 20
0.17
SUMMARY
5 YEAR 0.77 -4 0.81 -9 0.86 -10 0.87 41 0.36
7 YEAR 1.24 -1 1.25 -8 1.32 -10 1.34 59 0.65
10 YEAR 1.60 2 1.58 -5 1.65 -8 1.68 67 0.93
MGS Yield Daily Yield Weekly Yield Monthly Yield YTD Yield
07 May 21 Change 06 May 21 Change 30 Apr 21 Change 07 Apr 21 Change 31 Dec 20
bps bps bps bps
3 YEAR 2.32 -1 2.33 -2 2.34 19 2.13 44 1.88
5 YEAR 2.54 1 2.53 1 2.53 -5 2.59 44 2.10
7 YEAR 2.93 2 2.91 -5 2.98 -4 2.97 54 2.39
10 YEAR 3.08 0 3.08 -3 3.11 0 3.08 43 2.65
GII Yield Daily Yield Weekly Yield Monthly Yield YTD Yield
07 May 21 Change 06 May 21 Change 30 Apr 21 Change 07 Apr 21 Change 31 Dec 20
bps bps bps bps
3 YEAR 2.13 0 2.13 -3 2.16 -3 2.16 21 1.92
5 YEAR 2.60 0 2.60 -5 2.65 -1 2.61 34 2.26
7 YEAR 3.02 1 3.01 -2 3.04 8 2.94 51 2.51
10 YEAR 3.22 0 3.22 -4 3.26 7 3.15 41 2.81
• 1 bps = 0.01%
AAA Yield Daily Yield Weekly Yield Monthly Yield YTD Yield
• Increase in Yield = Decrease 07 May 21 Change 06 May 21 Change 30 Apr 21 Change 07 Apr 21 Change 31 Dec 20
in the bond price/value bps bps bps bps
3 YEAR 2.82 -2 2.84 -7 2.89 -6 2.88 37 2.45
5 YEAR 3.16 -1 3.17 -2 3.18 -8 3.24 46 2.70
Source: US Treasury, BNM & 7 YEAR 3.50 0 3.50 -4 3.54 -14 3.64 55 2.95
BIX Malaysia 10 YEAR 3.94 0 3.94 0 3.94 -13 4.07 68 3.26THE STAR
NEWS Bond market to stay resilient amid risks
UPDATE The Malaysian bond market is expected to remain strong in the second
half of the year amid a challenging first quarter despite some downside
risks. RAM Rating Services Bhd senior economist Woon Khai Jhek told
StarBiz that the corporate bond market is expected to remain robust this
year.
Today's headlines of interest and
summaries as extracted from the While issuance was rather tepid during the first two months of 2021
international and local media. (January-February average: RM4bil), he said the overall issuance swelled
to a high of RM23.8bil and RM12.7bil in March and April, respectively. He
said the recent robustness could be attributed to the front-loading of
firms’ financing needs to lock in lower interest rates, especially amid the
substantial upward pressure on bond yields earlier this year. While
upward pressure on yields (cost of borrowing) has subsided since then,
yields are likely to still trend with a slight upward bias as the global
economic recovery continues.
“Firms may likely be incentivised to bring forward their funding plans
before any large upward movement in interest rates occur when policy
rates start to normalise in 2022. “This should help to sustain the issuance
momentum through the second half of this year, ” he noted.THE MALAYSIAN RESERVE
NEWS Medium- to long-duration bonds the sweet spot
UPDATE AT THE Monetary Policy Committee (MPC) meeting last Thursday, Bank
Negara Malaysia (BNM) maintained the Overnight Policy Rate (OPR) at
1.75%, as widely expected by iFAST Research and all 20 economists
surveyed by Bloomberg.
Today's headlines of interest and
summaries as extracted from the Improvements in economic activity driven by external demand reduce
likelihood of further easing. BNM has acknowledged continued
international and local media.
improvements in economic activity year to date, driven by increased in
public and private sector expenditure and stronger recovery in global
demand which would benefit the manufacturing sector such as electronic
and electrical products, primary-related subsectors and oil and gas
sectors. This is supported by the Purchasing Managers’ Index (PMI) which
rose to 53.9 from 49.9 in March according to independent data provider
IHS Markit.
The rise in PMI points to a robust improvement in the manufacturing
sector on the back of increasing consumer confidence. The data
registered in April underlines a growth output for the first time in nine
months. However, lockdowns amid a growing number of Covid-19 cases
and slow vaccine rollout could dent the economic recovery.
Read more: Medium- to long-duration bonds the sweet spotTHE EDGE MARKET
NEWS F&N to undertake Sukuk programme to raise up to RM3b
UPDATE Fraser & Neave Holdings Bhd intends to undertake a sukuk programme of
up to RM3 billion in nominal value for refinancing of any existing
borrowings, corporate bonds, existing and future Sukuk issues. In a
bourse filing, the company said its wholly-owned subsidiary F&N Capital
Today's headlines of interest and Sdn Bhd has lodged with Securities Commission Malaysia the proposal
summaries as extracted from the for the establishment of the Islamic commercial papers (ICP) programme
and the Islamic medium term notes programme (IMTN).
international and local media.
Meanwhile, Malaysian Rating Corp Bhd has assigned a preliminary rating
of AAAIS(cg) to the IMTN programme and a preliminary rating of MARC-1
to the ICP programme. CIMB Investment Bank Bhd and OCBC Al-Amin
Bank Bhd are the joint principal advisers, joint lead arrangers and joint
lead managers for the Sukuk Murabahah programmes.
The joint syariah advisers for the Sukuk Murabahah programmes are
CIMB Islamic Bank Bhd and OCBC Al-Amin.
F&N’s shares price dropped 66 sen or 2.29% to RM28.10, bringing it a
market capitalisation of RM10.31 billion.ZAWYA
NEWS MARC issues update on Sparks Energy 1'S RM220.0 million proposed
ASEAN Green SRI Sukuk
UPDATE MARC wishes to inform that Sparks Energy 1 Sdn Bhd has faced delays in
achieving commercial operation date (COD) of its 30MWac solar power
plants in Kuala Muda, Kedah and Machang, Kelantan. The delays have
Today's headlines of interest and been attributed to logistics issues as a result of movement restrictions in
the country due to the COVID-19 pandemic, as well as to unfavourable
summaries as extracted from the
weather conditions. The programme carries a AA-IS/Stable rating from
international and local media. MARC. However, no notes under the proposed sukuk have been issued;
any issuance will take place only after the COD has been achieved.
Sparks Energy 1 had earlier obtained an interim extension of time (EOT)
of 75 and 84 days, revising the new CODs to December 14 and 23, 2020
for the Machang and Kuala Muda plants from the scheduled COD of
September 30, 2020. Construction progress for the Kuala Muda and
Machang plants stood at 93% and 73% as at end-March 2021 with COD
targeted in June and July 2021. The construction is being undertaken in
the walkaway period which ends in mid-June 2021 (the walkaway event
date) under the terms of the power purchase agreements (PPAs).
Read more: MARC issues update on Sparks Energy 1'S RM220.0 million
proposed ASEAN Green SRI SukukREUTERS
NEWS US yields rebound after two-month lows in wake of weak jobs report
UPDATE United States Treasury yields rebounded after hitting two-month lows on
Friday, following data that showed a much smaller-than-expected jobs
gain in April, with yields on longer-dated debt rising for the session as
investors remained confident the economy was on the road to a strong
recovery.
Today's headlines of interest and
summaries as extracted from the The benchmark 10-year yield, which dropped to 1.469%, the lowest since
international and local media. March 4, was last up 1.6 basis points (bps) on the day at 1.5771%, holding
below a 14-month high of 1.776% reached on March 30. The 30-year yield
tumbled to its lowest level since March 1 at 2.158%. It was last 4.4bps
higher at 2.28%. Non-farm payrolls increased by only 266,000 jobs last
month after rising by 770,000 in March, the Labour Department reported.
Economists polled by Reuters had forecast payrolls advancing by
978,000 jobs.
The unexpected slowdown in job growth was likely due to shortages of
workers and raw materials as the economy recovers from the coronavirus
pandemic. The yield drop was a “knee-jerk reaction” that faded as the
session wore on and the market digested the data, according to analysts.
“Despite a huge miss, which it was, it’s still employment going in the right
direction, ” said Andrew Richman, senior fixed income strategist at
Sterling Capital Management.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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