Monday, May 23, 2016

FI Research – MGS 10.5-year New Issue

Good Afternoon,

v The new issue of 10.5-year MGS with an issuance size of RM4.0 billion registered a moderately strong book-to-cover ratio (BTC) of 2.193 times along with supporting buying interests by local and foreign funds. Local investors, especially long-term funds were seemingly extending durations for better yields due to their relatively high cash in-hand.

v Compared to equivalent past MGS issuance in March 2015, this new issue MGS attracted lower BTC. The average yield of this MGS of 3.900% was however lower against 3.955% in March 2015 and 4.181 in January 2014.

v Next tender to watch is the new issue of 5.5-year MGS 11/21 in May 2016. Past tender result for similar tenure in April 2015 gave a yield range of 3.644% - 3.671%.


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