Thursday 25 Apr 2024
By
main news image

KUALA LUMPUR (Nov 2): Malaysian government bonds dropped Thursday on seasonal year-end weakness and the market will struggle to rally from here amid limited demand from investors, says Jennifer Kusuma, a senior Asia rates strategist at Australia & New Zealand Banking Group Ltd.

* “While domestic investors are broad and deep enough to absorb net issuance, they have been buying more year-to-date compared to past years, so any incremental demand from them would be defensive in nature,” says Singapore-based Kusuma

* In absence of foreign purchases, Malaysian bonds would find it hard to rally

* Still, there’s unlikely to be excessive divergence with U.S. Treasuries as the worst of outflows from Malaysian bonds is probably over

* NOTE: 10-year govt yield rises 8bps to 3.98%; fell 16 bps in past three days

 

      Print
      Text Size
      Share