· The new issuance of 20-year MGS maturing 7 September 2037 with a size of RM2.0bil recorded a relatively weak book-to-cover (BTC) ratio of 1.585 times with an average yiel

Dear Readers, Highlights of the report as follow:-

·        The new issuance of 20-year MGS maturing 7 September 2037 with a size of RM2.0bil recorded a relatively weak book-to-cover (BTC) ratio of 1.585 times with an average yield of 4.762%. We find the spread of the 20-year MGS/UST of 202 basis points to be higher compared to the average 6-year MGS/UST spread of 140 basis points from 2011 to 2017. Weaker demand for the 20-year MGS came from both local and foreign buying owing to the recent GG issuance. ·        The next tender to watch is the new issuance of the 5-year MGII in April (Table 2). It will be the third new issuance of MGII for 2017. The last issuance of such papers was the 5.5-year MGII ‘08/21 in February 2016 which reported a 2.846 times BTC ratio.