Results: GII 7/27 New Issue

Results: GII 7/27 New Issue

·         Very strong bid. The new 10.5y GII 7/27 auction drew a high bid/cover of 3.41x on a large expected size of MYR4b. Total bids surpassed the previous auction’s record with MYR13.7b today. Keen bidding interest was attributed to a combination of better market sentiment and continued softening of the USD against regional currencies. Foreign interest was also noted, albeit small.

·         Successful yields averaged 4.258%, lower than the pre-auction WI of 4.275%. The highest yield cut off at 4.265% and the lowest yield was 4.245%.

·         Next auction is in February and is the new issue of 7.5y GII 8/24 which we estimate to be another MYR4b size.

Bid to cover:            3.413x

Highest yield:           4.265%

Average yield:         4.258%

Lowest yield:           4.245%

Cut off:                   11%