Ringgit steady above 200-day moving average

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SINGAPORE (March 11): Malaysian ringgit is little changed against the dollar as investors digest mixed US employment data released Friday.

* USD/MYR is steady at 4.0887 as currency pair consolidates near-term under its 200-DMA, currently around 4.1010

* Goldman Sachs estimates in client note Monday that Taiwan, Malaysia and Korea would likely face the biggest hit from a shift in China’s imports toward the US if there was to be a new purchase agreement between US and China

* Malaysia has turned to Japan for its first fundraising in the global debt market since a landmark election last year that returned Prime Minister Tun Dr Mahathir Mohamad to power

** Nation sold 200 billion yen (US$1.8 billion) of 10-year bonds Friday at a coupon of 0.53%. That’s lower than the 0.65% originally indicated by Finance Minister Lim Guan Eng, who visited Japan last month to meet investors

* Malaysia’s bonds are benefiting from a dovish central bank, which said last week inflation is likely to stay low due to policy measures, and it will continue to monitor downside risks in the economic and financial environment

** The yield curve has been bull flattening, with longer-maturity yields dropping faster than shorter-dated ones, amid expectations inflation will remain suppressed. The central bank appears ready to cut its policy rate if needed to support the economy, according to Bloomberg Economics

** 10-year yield rises 1bp to 3.87%

* Nation’s former ruling coalition will remain intact as two component parties set aside differences with their bigger partner who is joining forces with an Islamist opposition group, the Star reported

* Overseas funds were net sellers of US$47.3 million in local equities on March 7