FW: FI Research -New Issuance of 7-year MGII

 

 

 

Dear Readers,   Highlights of the report as follow:-

·         The new issuance of 7-year MGII maturing August 15th, 2025 with an issuance size of RM3bn recorded a moderately low book-to-cover ratio (BTC) of 2.28 times. This BTC is the lowest since the MGII new issuance on 5th January 2016. ·         For the past week, the spread widened due to a fall in the MGS yield while the MGII yield rose. The 7-year MGS yield fell following buying interest in the local bond market, despite lukewarm trading activity leading up to and after the holidays. However, earlier this week the market saw some sell-off across the curve as investors became jittery across the globe. Meanwhile, heavy sell-offs ensued in the US bond space demonstrated by the UST 10-year breaking above 2.85% levels after the Fed adopted a hawkish stance followed by the release of healthy employment data, both of which fueled inflation expectations. ·         Next tender to watch will be the re-opening of the 10-year MGS with an estimated size of RM2 billion. This is also the third MGS re-opening tender in 2018. The last re-opening of such papers was the 10-year MGS ‘11/27 in December 2017 which reported a BTC ratio of 1.53 times.

 

 

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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