Fixed Income Foreign Flows_8 Sep 2015

Fixed income foreign flows: Still testing the resilience of flows

·         Total debt securities netted outflows of MYR8.9b in August driven by MGS which saw foreign holdings declining by MYR8b to MYR157.4b/46.0%.

·         Near-term outlook on foreign flows remains challenging. We estimate that YTD portfolio outflows total MYR44.3b, with MYR28.0b from debt securities and MYR16.3b from equities.

·         Regional: Indonesia's IndoGB and Malaysia's MGS reported total outflows of -USD2.5b in August.