FW: Auction Results: MGS 4/33 Reopening_20171122

 

 

Auction Results: MGS 4/33 Reopening

·         Strong bid. Today’s 15y MGS 4/33 reopening drew solid demand with bid/cover of 3.811x on a slightly larger-than-expected MYR3b total size (MYR2b auction + MYR1b private placement). Local bond sentiment was lifted by the strong appreciation bias of the Ringgit, which was supported by BNM’s hawkish shift in monetary policy outlook and a weak USD.

·         Successful yields averaged 4.55% which is similar to the WI level taken before the auction closing and the highest yield cut at a tight 4.563%. Worth noting is that today’s bid/cover of 3.811x is the highest since July 2014, although the high cover ratio was partly due its MYR2b size.

·         Next auction is the reopening of 5y GII 4/22. We estimate a size of MYR2.5b.

 

Bid to cover:            3.811

Highest yield:           4.563%

Average yield:         4.550%

Lowest yield:           4.532%

Cut off:                   94%

 

 

 

 

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