Research & Analysis

Global bonds ended mixed in October. USTs, for example, remained under pressure amid rising expectation of a rate hike. In the UK, on the other hand, gilts recouped most of their previous month’s losses following the mini budget’s U-turn and the appointment of a new prime minister.

Malaysian Government Bond Market           Local government bond market growth slowed in September. While the first Sustainability GII did draw decent demand at auction, heavy selling in the secondary market amid the global bond rout pushed yields higher. BNM is expected to remain on a rate tightening path.

In August, total MGS/GII outstanding expanded to RM965.7 billion (July: RM958.8 billion) amid lower redemptions (August: RM8.6 billion; July: RM19.0 billion). The increase in the outstanding amount was driven by stronger MGS issuances valued at RM10.0 billion (July: RM5.0 billion). As GII issuances had come in at RM5.5 billion (July: RM10.5 billion), the total gross