FW: Budget 2018: Fixed Income View_20171027

 

 

Dear all,

 

Budget 2018: Fixed Income View

·         Budget 2018 aims to cut fiscal deficit/GDP ratio to 2.8% and reiterate the 3.0% target in 2017, which reinforces fiscal discipline and is seen as marginally credit positive to sovereign rating.

·         For government bonds supply, we expect a gross issuance of MYR107b in 2018 and revise up our forecast in 2017 slightly to MYR107.5b from MYR107b.

·         We continue to expect ample supply of duration in 2018 as the government will likely continue to actively manage maturity profile to reduce refinancing risk.

 

Thank you.

 

 

Regards,