BOND+SUKUK INFORMATION EXCHANGE BIXMALAYSIA.COM - NEWS UPDATE 28 May 2021
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BOND+SUKUK INFORMATION EXCHANGE BIXMALAYSIA.COM NEWS UPDATE 28 May 2021
US Yield Daily Yield Weekly Yield Monthly Yield YTD Yield
MARKET Treasury 27 May 21
3 YEAR 0.31
Change
bps
0
26 May 21
0.31
Change
bps
-3
20 May 21 Change
0.34
bps
-5
27 Apr 21
0.36
Change
bps
14
31 Dec 20
0.17
SUMMARY
5 YEAR 0.81 1 0.80 -2 0.83 -7 0.88 45 0.36
7 YEAR 1.28 4 1.24 -1 1.29 -4 1.32 63 0.65
10 YEAR 1.61 3 1.58 -2 1.63 -2 1.63 68 0.93
MGS Yield Daily Yield Weekly Yield Monthly Yield YTD Yield
27 May 21 Change *25 May 21 Change 20 May 21 Change 27 Apr 21 Change 31 Dec 20
bps bps bps bps
3 YEAR 2.31 1 2.30 0 2.31 -7 2.38 43 1.88
5 YEAR 2.57 -1 2.58 0 2.57 0 2.57 47 2.10
7 YEAR 3.00 0 3.00 2 2.98 1 2.99 61 2.39
10 YEAR 3.20 0 3.20 0 3.20 6 3.14 55 2.65
GII Yield Daily Yield Weekly Yield Monthly Yield YTD Yield
27 May 21 Change *25 May 21 Change 20 May 21 Change 27 Apr 21 Change 31 Dec 20
bps bps bps bps
3 YEAR 2.04 -3 2.07 -4 2.08 -11 2.15 12 1.92
5 YEAR 2.64 0 2.64 3 2.61 0 2.64 38 2.26
7 YEAR 3.03 1 3.02 4 2.99 1 3.02 52 2.51
10 YEAR 3.30 0 3.30 2 3.28 4 3.26 49 2.81
• 1 bps = 0.01% AAA Yield Daily Yield Weekly Yield Monthly Yield YTD Yield
• Increase in Yield = Decrease 27 May 21 Change *25 May 21 Change 20 May 21 Change 27 Apr 21 Change 31 Dec 20
bps bps bps bps
in the bond price/value 3 YEAR 2.80 -2 2.82 -2 2.82 -7 2.87 35 2.45
5 YEAR 3.16 0 3.16 -1 3.17 -1 3.17 46 2.70
Source: US Treasury, BNM & 7 YEAR 3.49 -1 3.50 -2 3.51 -5 3.54 54 2.95
10 YEAR 3.90 -2 3.92 -2 3.92 -4 3.94 64 3.26
BIX Malaysia *27 May 2021 is a public holiday in Malaysia for Wesak DayNEWS THE STAR
Govt raises fiscal deficit target to 6% of GDP for 2021
UPDATE The government has raised the 2021 fiscal deficit target to 6% from 5.4%
of gross domestic product (GDP) previously. This comes after factoring
in the continuing measures from 2020 economic stimulus packages, as
well as the Permai and Pemerkasa packages launched in the first quarter
Today's headlines of interest and of this year. Consequently, the federal government’s statutory debt is also
summaries as extracted from the estimated to increase to 58.5% by end-2021 from 58% in 2020.
international and local media.
“This is still below the statutory limit of 60%, which was approved by
Parliament in August 2020. “The country’s debt profile remains
favourable with more than 90% of government debt denominated in
ringgit, supported by ample domestic liquidity and long maturity
issuances which supported funding flexibility, ” the Finance Ministry
(MoF) said. It said this in a statement after The Fiscal Policy Committee
meeting chaired by Prime Minister Tan Sri Muhyiddin Yassin yesterday.
It said the government’s current priority is to protect lives from the threat
of Covid-19, while also ensuring the country’s economic recovery agenda
is on track, underscored by the principles of prudent financial
management. “Enhanced efforts towards fiscal consolidation measures
will be implemented in phases in the medium to long term, when our
economy is firmly on its recovery and growth trajectory, ” the MoF said.NEWS BLOOMBERG
Yellen says higher inflation will last through 2021, then fade
UPDATE US Treasury Secretary Janet Yellen said she continues to see this year’s
burst in inflation as temporary, though likely to last through the end of
2021. “My judgment right now is the recent inflation we’ve seen will be
temporary, it’s not something that’s endemic,” Yellen said Thursday in
Today's headlines of interest and response to questions from lawmakers. “I expect it to last, however, for
summaries as extracted from the several more months, and to see high annual rates of inflation through the
international and local media. end of this year,” Yellen said while testifying during a House
Appropriations subcommittee’s virtual hearing.
The US consumer price index rose 4.2% in the year through April, the
highest reading in more than a decade. Yellen said the spike was caused
by price changes driven by consumer spending shifts related to the
pandemic and to supply-chain bottlenecks.
She rejected the idea that the Biden administration’s plans for long-term
spending on infrastructure and other projects would contribute
substantially to inflation. Steve Womack, a Republican from Arkansas
who asked Yellen about rising prices, said he expects Biden’s proposals
will in fact contribute to inflation.REUTERS
NEWS TREASURIES-U.S. yields gain on report of Biden's $6 trillion budget
UPDATE U.S. Treasury yields rose on Thursday, bolstered by a New York Times
report saying President Joe Biden will announce on Friday a $6 trillion
budget for 2022, the largest spending since the second world war, fueling
supply concerns. Investors also sold Treasuries ahead of the
Today's headlines of interest and government’s sale of $62 billion in 7-year notes later on Thursday. Bond
dealers tend to sell Treasuries ahead of an auction to push yields higher
summaries as extracted from the
so they can buy them at a lower price in a move called supply
international and local media. concession.
The budget figure suggested that the U.S. government will be running
deficits of more than $1.3 trillion through the next decade, according to
the report. The report weighed on Treasury prices because it means the
government would have to flood the market with more debt to finance
the budget. "The supply fear is an easier thing to quickly price in. What
traders view is the worst downside," said Steve Feiss,managing director,
fixed income, at broker-dealer Etico Partners.
"But when you take a moment to pause, you see that it's only a proposal
and it's not a done deal. There will be some horse trading give and take.“
Thursday's data on U.S. jobless claims and first-quarter gross domestic
product growth also helped lift Treasury yields. Both reports showed the
U.S. economy was on a stable path to recovery from the pandemic.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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