Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (April 23): Malaysian bonds rise for the first time in eight days as regulators pledged to deepen onshore markets and said local markets were resilient following last week’s sell- off.

* Nation’s 10-year bond yield falls 5bps to 3.90% after climbing 16bps in previous seven sessions after FTSE Russell said it may drop Malaysian debt from its global bond index

* USD/MYR falls 0.1% to 4.1267; support 4.0930, 4.0740, 4.0545; resistance 4.1500, 4.1655, 4.1785

* Domestic markets remain resilient, supported by ample liquidity, strong infrastructure and firm fundamentals, Bank Negara Malaysia and Securities Commission said in a statement Tuesday

** Avg daily trading volume in local bond market at RM5.4b YTD, vs 3-year avg of RM3.6b

** Policy makers will continue to engage with market players to deepen onshore markets 

* Balance of risks around long-dated Malaysian yields remains tipped to the upside, and any market support at current levels is likely to be defensive, says Jennifer Kusuma, senior Asia rates strategist at ANZ in Singapore

** If FTSE Russell does drop Malaysia, this would trigger outflows roughly equivalent to 28%-50% of full-year net supply in 2019

** Better support will emerge around 4% for 10-year yield, and MYR bonds will be backed by benign growth/inflation backdrop, a deep onshore investor base and a deepening of onshore FX hedging market over time

* Worst is over is over for domestic capital market and FTSE Russell is likely to retain Malaysia in its bond index, CIMB CEO Zafrul Aziz was quoted by Star newspaper as saying

* Foreign-exchange reserves rose 0.5% to $103.5b in the first two weeks of April, central bank said Monday

      Print
      Text Size
      Share