Re-opening of 5-year MGS maturing 30 November 2021 with an issuance size of RM3.0 billion registered lower book-to-cover ratio (BTC) of 1.67 times compared to average YTD’s

Dear Readers, Highlights of the report as follow:-

·         Re-opening of 5-year MGS maturing 30 November 2021 with an issuance size of RM3.0 billion registered lower book-to-cover ratio (BTC) of 1.67 times compared to average YTD’s BTC of 2.23 times. Demand was mainly from local pension funds. Foreign appetite was affected by the resurgence of US dollar strength (USD/MYR rose from 3.985 in mid-August to current level of 4.127) and sell-off across global bond markets. ·         Next tender to watch is the re-opening of 20-year MGII 10/35 in September 2016, which we expect to see improvement in overall bids given the inclusion of MGII into JP Morgan’s GBI-EM Global Diversified bond index.