BOND+SUKUK INFORMATION EXCHANGE BIXMALAYSIA.COM NEWS UPDATE

17 July 2020 US Yield Daily Yield Weekly Yield Monthly Yield YTD Yield Treasury 16 July 20 Change 15 July 20 Change 09 July 20 Change 16 June 20 Change 31 Dec 19 MARKET bps bps bps bps 3 YEAR 0.17 -1 0.18 -1 0.18 -6 0.23 -145 1.62 5 YEAR 0.28 0 0.28 0 0.28 -6 0.34 -141 1.69 SUMMARY 7 YEAR 0.46 -1 0.47 0 0.46 -10 0.56 -137 1.83 10 YEAR 0.62 -2 0.64 0 0.62 -13 0.75 -130 1.92

MGS Yield Daily Yield Weekly Yield Monthly Yield YTD Yield 16 July 20 Change 15 July 20 Change 09 July 20 Change 16 June 20 Change 31 Dec 19 bps bps bps bps 3 YEAR 2.00 0 2.00 1 1.99 -32 2.32 -98 2.98 5 YEAR 2.18 0 2.18 1 2.17 -36 2.54 -97 3.15 7 YEAR 2.41 -3 2.44 0 2.41 -33 2.74 -89 3.30 10 YEAR 2.64 -2 2.66 1 2.63 -28 2.92 -66 3.30

GII Yield Daily Yield Weekly Yield Monthly Yield YTD Yield 16 July 20 Change 15 July 20 Change 09 July 20 Change 16 June 20 Change 31 Dec 19 bps bps bps bps 3 YEAR 2.04 0 2.04 0 2.04 -34 2.38 -102 3.06 5 YEAR 2.14 -3 2.17 -3 2.17 -39 2.53 -105 3.19 7 YEAR 2.46 -2 2.48 -2 2.48 -33 2.79 -84 3.30 10 YEAR 2.65 -5 2.70 0 2.65 -24 2.89 -77 3.42 • 1 bps = 0.01% • Increase in Yield = Decrease AAA Yield Daily Yield Weekly Yield Monthly Yield YTD Yield in the bond price/value 16 July 20 Change 15 July 20 Change 09 July 20 Change 16 June 20 Change 31 Dec 19 bps bps bps bps 3 YEAR 2.67 0 2.67 -4 2.71 -25 2.92 -88 3.55 Source: US Treasury, BNM & 5 YEAR 2.82 0 2.82 -3 2.85 -26 3.08 -85 3.67 7 YEAR 2.99 1 2.98 0 2.99 -25 3.24 -77 3.76 BIX Malaysia 10 YEAR 3.23 1 3.22 -1 3.24 -18 3.41 -66 3.89 THE EDGE MARKETS NEWS Global capital looking for safe haven in emerging markets, says Standard Chartered UPDATE Low bond yields, signs of weakening US dollar and earnings rebound expectations — these are some of the main drivers of the market rallies seen across the world including in Malaysia, despite the ongoing Covid-19 pandemic, according to Standard Chartered head of fixed income, Today's headlines of interest and currencies and commodities investment strategy, Manpreet Gill summaries as extracted from the international and local media. Against this backdrop, global capital is actively scouting for a safe haven with lucrative returns, which bodes well for the Malaysian equity market and its regional peers, said Manpreet at Standard Chartered’s virtual press conference on the global market outlook for the second half of 2020. “Low bond yields is one driver of that because you’d expect to see global capital start to look around the world for where the returns may be highest,” he noted.

“The dollar weakening, or at least [it’s] not getting stronger, tends to induce an environment where you see foreign investment inflows in emerging markets or more broadly, the Asian equity markets. [This, coupled with] low bond yields, does offer some value in equity markets in general,” he added.

Read more: https://www.theedgemarkets.com/article/global-capital-looking-safe- haven-emerging-markets-says-standard-chartered NEWS Felda discussing RM2.5b sukuk The Federal Land Development Authority (Felda) is in discussions with UPDATE the Finance Ministry over the issuance of a government-guaranteed sukuk to finance the restructuring of its loans worth RM2.5bil, the heard yesterday

Today's headlines of interest and This will be Felda’s second sukuk issuance after its first one in 2018 worth summaries as extracted from the RM2bil. Minister in the Prime Minister’s Department (Economy) Datuk Seri international and local media. said the government had also formed a special task force chaired by Tan Sri Abdul Wahid Omar to identify the best way to ensure Felda’s financial self-reliance and sustainability for the benefit of the entire settler community.

“This team has conducted engagement sessions with Felda’s board of directors, management team, FGV Holdings Bhd and various stakeholder groups for their views and feedback on how to resolve issues related to Felda, ” he said. The task force is expected to present its findings in August 2020, he said in reply to Datuk Jalaluddin Alias (BN-Jelebu), who wanted to know the status of the implementation of the findings in the Felda White Paper as of the second quarter of 2020. Mustapa said the White Paper, tabled at the Dewan Rakyat on April 10 last year, outlines several short-, medium- and long-term strategies, including improving corporate governance, handling cash-flow problems, and the rationalisation of investment and interest. REUTERS NEWS Foreigners sell Treasuries in May, buy record amount of U.S. stocks: data Foreigners sold U.S. Treasury bonds and notes for a third straight month UPDATE in May, but bought a record amount of stocks, as well as corporate bonds, data from the U.S. Treasury Department showed on Thursday, as investors drove a rally in risk assets. Foreign outflows from the U.S. Treasury market totaled $27.7 billion in May, compared with outflows of Today's headlines of interest and $176.5 billion the previous month. In April, Treasuries saw a record summaries as extracted from the outflow of $299 billion. At the same time, however, foreign investors international and local media. purchased $79.7 billion of U.S. equities in May, an all-time high. In April, foreigners sold $8.6 billion in stocks. U.S. corporate bonds saw an inflow for a third consecutive month of $13.6 billion, from an inflow of $10.94 billion the previous month.

“If you look at the transactions data, there was a pro-risk pivot in May,” said Jon Hill, interest rates strategist at BMO Capital in New York. “There was net selling of Treasuries, and a decline in agency buying, but net buying of corporate bonds and equities. It seems like some of the foreign private investors helped push that rally in May as the Federal Reserve’s liquidity programs were kicking in,” he added. Benchmark U.S. 10-year Treasury yields ended May at 0.64%, mostly, steady for most of the month, after hitting a record low of 0.318% US10YT=RR in March. Data also showed that Japan remained the largest non-U.S. largest holder of Treasuries during the month, although its holdings declined to $1.26 trillion in May, from $1.266 trillion in April. DISCLAIMER

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