The re-opening of the 10-year MGII maturing 26 July 2027 with a size of RM3.0bil recorded a relatively strong bid-to-cover (BTC) ratio of 2.541 times. This was the highest BTC rat

Dear Readers, Highlights of the report as follow:-

·         The re-opening of the 10-year MGII maturing 26 July 2027 with a size of RM3.0bil recorded a relatively strong bid-to-cover (BTC) ratio of 2.541 times. This was the highest BTC ratio since the 10-year MGII opening in August 2014 which registered 2.598 times BTC ratio. ·         In the past two weeks, the 10-year MGII/MGS spread has widened by 2.2bps indicating MGII is more attractive to investors compared to MGS. This had managed to attract value-seekers, though, with the upcoming FOMC meeting on Wednesday where a 25bps rate hike is expected we believe foreign investors are staying on the sidelines for now.  ·         The next tender to watch is the re-opening of the 7-year MGS in July 2017. It will be the fifth re-opening of MGS for 2017. The last issuance of such papers was the 7-year MGS ‘08/23 in August 2016 which reported a 1.577 times BTC ratio.