FI Research – January’s foreign holding of local debts

v Foreign holding as a percentage of total debts held steadily at 19.57% in January 2016. The ratio has been hovering in the range of 19-21% since December 2014. v Most of foreign interests were largely focus on short-end to belly of MGS yield curve amid strengthening of Ringgit Malaysia, SSR rate cut and positive news flow from 2016 Budget recalibration. v Foreign holding of GII eased slightly in response to narrowing GII/MGS spreads and PDS stayed neutral at 2.9%.