Malaysian Government Bond Market
Total MGS/GII outstanding grew further to RM962.3 billion at end-June from RM947.3 billion at end-May. Meanwhile, new issuance of GII papers dropped to RM4.5 billion from RM8.0 billion recorded in May. There was no redemption of government bonds for the second consecutive month. In 1H2022, total gross MGS/GII issuance came in higher at RM87.5 billion (1H2021: RM80.5 billion), which is within our projected range of RM170 billion to RM180 billion for the whole of 2022. Government bond auctions continued to see decent reception in June, with BTC ratios exceeding 2.0x. The sale of the RM4.5 billion 5y GII drew the strongest demand (BTC ratio: 3.1x), mainly from local institutional investors. A total of RM10.0 billion was raised through three public offerings, and another RM5.0 billion was raised via two private placements. Going into 2H2022, there are 17 remaining scheduled debt offerings based on the 2022 auction calendar, consisting of eight offerings via MGS, while the rest will be from GII issuances.