· Decent bid, lacklustre market. Today’s 3.5y GII 4/20 tender garnered a decent

Results: GII 4/20 New Issue

·         Decent bid, lacklustre market. Today’s 3.5y GII 4/20 tender garnered a decent bid/cover of 2.066x although it was on a lower-than-expected MYR3.5b size. Bid was seen from predominantly local real-money and some interest from fast money accounts. There may be some rollover demand from the MYR11b GII maturity on 15th November, but may not be much as the maturity date is still >1 month away.

·         Overall, market was lacklustre in the absence of new catalyst and the WI had pretty much stuck to a tight range since the auction was announced on Tuesday. Successful yields averaged 3.226%, fairly close to the pre-auction WI of around 3.22/21 while the cut-off yield was 3.238% and the lowest yield was 3.200%.

·         Next auction is the reopening of 10y GII 9/26. We estimate a size of MYR3b.

Bid to cover:            2.066x

Highest yield:           3.238%

Average yield:         3.226%

Lowest yield:           3.200%

Cut off:                   64%