FW: Government Bond Auction Results_20170928

 

 

Dear all,

 

Results: GII 8/33 Reopening

·         Modest bids. Today’s 15y GII 8/33 reopening auction garnered a muted bid/cover of 1.73x on a larger than expected total issuance size of MYR4b (MYR3b auction + MYR1b private placement). The positive bond sentiment seen earlier in the month has waned in recent days after the hawkish tone by US Fed members and the rebound in USD with USDMYR pair currently around 4.23 levels. Participation in this auction was largely from domestic Islamic accounts particularly lifers and pension funds.

·         Successful bids averaged 4.579% in yield and cut off near the top end of pre-auction WI range 4.65/48% with a high 4.64%. Lowest successful yield bid was 4.52%.

·         Scheduled auctions in October will start with the retap on 7y MGS 9/24 in a size of MYR3.5b we estimate.

 

Bid to cover:            1.727

Highest yield:           4.640%

Average yield:         4.579%

Lowest yield:           4.520%

Cut off:                   53%