FW: FI Research -Re-opening of 10-year MGII

 

 

Dear Readers,   Highlights of the report as follow:-

·         The re-opening of the 10-year MGII maturing 26 July 2027 with a size of RM3.0bil recorded a muted bid-to-cover (BTC) ratio of 1.832 times. This was lower compared to the BTC ratio of the previous 10-year MGII reopening in June 2017 which registered 2.541 times BTC ratio. ·         In the past week, the 10Y MGII and 10Y MGS spread has widened by 5bps amid BNM’s hawkish statement. The stronger ringgit, which ensued as markets started pricing in a rate hike in 2018, had managed to attract foreign demand for Malaysian bonds. ·         The demand for the 10Y MGII may have been hampered by cautious sentiment ahead of a release of a slew of economic data in the US such as well as Malaysia’s 3Q GDP growth rate. ·         The next tender to watch is the re-opening of the 15-year MGS in November 2017. It will be the last 15-year MGS re-opening for 2017. The last issuance of such papers was the 15-year MGS ‘04/33 in April 2017 which reported a 2.057 times BTC ratio.

 

 

Best regards,

Fixed Income Research & Strategy

AmBank Research, AmBank (M) Berhad

+603 2036 2292 (DL) +03 2031 7218 (Fax)

Level 15, Bangunan AmBank Group, 55 Jalan Raja Chulan, 50200 Kuala Lumpur

 

 

 

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