Tuesday, March 13, 2018

FW: Auction Results: MGS 3/25 New Issue

 

 

Auction Results: MGS 3/25 New Issue

·         Strong bids. Today’s new issue of 7y MGS 3/25 garnered a robust bid/cover of 2.347x on an expected total issuance size of MYR4b (MYR3b auction + MYR1b private placement). Having good subscription for the bond was not unexpected given its new 7y benchmark status, which should attract some interest to switch from the existing 7y MGS 9/24. We believe bids came from both trading accounts and buy-and-hold investors.

·         Successful yields came to an average of 3.882% and the high cut off at 3.889%, marginally above the tight pre-auction WI range of 3.88/87%. The lowest successful yield was 3.870%. At current level, the relative cheapness of 7y MGS as compared to 5y and 10y that existed in the past ~2 months has more or less normalized.

·         The next scheduled auction is a reopening of 15y GII 6/33 at an estimated size of MYR2.5b.

 

Bid to cover:            2.347

Highest yield:           3.889%

Average yield:         3.882%

Lowest yield:           3.870%

Cut off:                   68%

 

If you like our report, we welcome your support in The Asset Benchmark Review for Malaysian Ringgit Bond.

To vote, click here. Thank you.

 

 

Regards,

 

Winson Phoon, ACA

(65) 6231 5831

winsonphoon@maybank-ke.com.sg

 

Se Tho Mun Yi

(603) 2074 7606

munyi.st@maybank-ib.com

 


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