FW: Government Bond Auction Results_20170829

 

Results: GII 8/24 Reopening

·         Solid bids. Today’s 7y GII 8/24 reopening auction garnered a healthy bid/cover of 2.10x on an expected total issuance size of MYR4b (MYR3.5b auction plus MYR0.5b privately placed). The cover ratio is stronger than the previous two GII auctions likely due to the recent constructive tone in MGS market, although still slower than the pace seen in 1H17. The average bid/cover for 7y MGS/GII auctions in Jan-Jul 2017 was 2.64x. Participation from local investors was keen, with interest noted from lifers, banks and GLC given the still attractive spread over MGS.

·         Successful yield bids averaged 3.975% with the high cutting off at 3.980%, within the pre-auction WI range of 3.98/97%. The lowest successful yield bid was 3.963%.

·         Next up on the auction schedule is another reopening of 5y MGS 3/22 in a size of MYR4b we estimate.

 

Bid to cover:            2.104

Highest yield:           3.980%

Average yield:         3.975%

Lowest yield:           3.963%

Cut off:                   63%