FW: Government Bond Auction Results_20170914

 

Dear all,

 

Results: MGS 3/22 Reopening

·         Moderate bids. The 5y MGS 3/22 reopening auction today posted a modest bid/cover of about 1.90x on an expected MYR4b issuance size. This is better than the 1.54x bid/cover seen in the last 5y MGS auction as foreign participation likely increased on the back of the upbeat outlook on the Ringgit. Local investors are generally less keen on this low-yielding part of the curve which has already seen some tightening since the start of September.

·         Successful bids averaged 3.501% which was at the tighter end of the pre-auction WI of around 3.515/3.50, while the highest yield cut at 3.52% and the lowest successful bid was 3.481%.

·         Next auction before the month ends is a retap on 15y GII 8/33 which we estimate to be in a size of MYR2.5b.

 

Bid to cover:            1.899

Highest yield:           3.520%

Average yield:         3.501%

Lowest yield:           3.481%

Cut off:                   73%