Malaysia's weight in GBI-EM Global Diversified index to stabilise 2H2017.

Malaysia's weight in GBI-EM Global Diversified index to stabilise 2H2017. In June's month-end rebalancing, GII 4/20 was added to the index, the first time a new Malaysian bond is added since Nov 2016, after six MGS stocks were removed and Malaysia's weight cut by ~3 percentage points. Also, the phase-in effect of Czech Republic reached the final month. Going forward, some of the more liquid benchmarks of GII and MGS, such as the 5y, 7y 10y may be included if the minimum size requirement is met. We expect Malaysia’s weight to stabilise.