· Re-opening of 20-year MGII maturing 31 October 2035 with an issuance size of RM2.0bn

Dear Readers, Highlights of the report as follow:-

·         Re-opening of 20-year MGII maturing 31 October 2035 with an issuance size of RM2.0bn registered the second highest year-to-date book-to-cover ratio (BTC) of 2.89 times. It was largely supported by local pension funds, insurance and asset management companies as well as strong foreign participation. ·         Going forward, we expect the spread of MGII/MGS to narrow on rising buying interests by both local and foreign players following the recent inclusion of MGII into JP Morgan’s GBI-EM Global Diversified bond index. Next tender to watch is the new issue of 3.5-year MGII 04/20 in October 2016, the last new issuance of government papers for year 2016.