· Moderate demand. Today’s 20y MGS 4/37 auction drew a bid/cover of 1.704x on an

Results: MGS 4/37 Reopening

·         Moderate demand. Today’s 20y MGS 4/37 auction drew a bid/cover of 1.704x on an expected MYR2.5b size. Domestic bond market sentiment remains modestly supported as externally UST yields dipped after the sluggish US jobs data last week and regional currencies have been broadly stronger against the USD.

·         The MYR2.5b supply is not excessive and was well absorbed by market with no yield upward pressure seen in this part of the curve leading up to the auction. Successful yields averaged 4.558%, within the pre-auction WI of around 4.57/54 and the highest yield cut at 4.576%.

·         Next auction is the reopening of 10y GII 7/27. We estimate an auction size of MYR4b.

Bid to cover:            1.704

Highest yield:           4.576%

Average yield:         4.558%

Lowest yield:           4.540%

Cut off:                   3%