FW: FI Research -Re-opening of 5-year MGII

 

 

Dear Readers,   Highlights of the report as follow:-

·         The re-opening of the 5-year MGII maturing 14 April 2022 with a size of RM3.0bil recorded a moderate bid-to-cover (BTC) ratio of 1.715 times. This BTC ratio was much lower compared to the previous re-opening on 21st July 2016 of 2.454%. ·         For the past two weeks, the 5Y MGII/MGS spread has widened by 6bps but did not manage to stimulate investors’ appetite possibly due to cautious sentiment ahead of a busy week in the US with a slew of Fed speeches, release of key economic data such as 3Q GDP, Personal Income and Outlays, ISM Manufacturing PMI and the long-awaited Senate’s vote on the tax bill.   ·         The next tender to watch is the re-opening of the 10-year MGS in December 2017. It will be the last MGS re-opening for 2017. The last issuance of such papers was the 10-year MGS ‘11/27 in July 2017 which reported a 1.683 times BTC ratio.

 

 

Best regards,

Fixed Income Research & Strategy

AmBank Research, AmBank (M) Berhad

+603 2036 2292 (DL) +03 2031 7218 (Fax)

Level 15, Bangunan AmBank Group, 55 Jalan Raja Chulan, 50200 Kuala Lumpur

 

 

 

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