Fixed Income Foreign Flows_20150410

Muted Foreign Flows to GII Thus Far

·         Going forward we will have a more timely update of foreign flows as BNM will publish foreign holdings data on a monthly basis with a lag of 5 business days (previously a lag of 1 month).

·         Malaysia: Foreign holdings of total debt securities declined by MYR5.2b MoM to MYR213.4b and this was driven by MYR10.8b outflow from discount instruments offset by MYR5.7b inflow to MGS, but the net inflow to MGS we believe is largely due to the redirection of flows from matured BNM notes; YTD we think such redirected flows amount to about MYR7-10b or 2-3% of MGS foreign holdings.

·         Regional: Indonesia saw USD0.3b outflow in March while Korea and Thailand's data is pending.

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