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%
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Regards,
Winson Phoon, ACA
(65) 6231 5831
Se Tho Mun Yi
(603) 2074 7606
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