FW: FI Research -New issuance of 3.5-year MGS

 

 

Dear Readers,   Highlights of the report as follow:-

·         The new issuance of the 3.5-year MGS maturing 15 February 2021 with a size of RM3.5bil recorded a bid-to-cover (BTC) ratio of 1.706 times. Average yield for this MGS is 3.441%and the expected yield is between 3.422% and 3.455%. ·         In the past week, the spread has widened by 2.8bps, failing to attract value-seekers as recent risk aversion amid escalating geopolitical tension between US and North Korea had diminished appetite for emerging market assets. ·         The next tender to watch is the re-opening of the 7-year MGII in August 2017. It will be the second re-opening of the 7-year MGS for 2017 where the previous re-opening of MGS ‘08/24 in May 2017 reported a 2.481 times BTC ratio.