FW: Auction Results: MGS 11/27 Reopening_20171206

 

 

Auction Results: MGS 11/27 Reopening

·         Tepid demand. Today’s 10y MGS 11/27 reopening auction displayed somewhat lackluster tone garnering 1.53x bid/cover on an expected MYR2.5b total size (MYR2b auction + MYR0.5b private placement). This is the lowest bid/cover YTD. We think market’s lukewarm interest in MGS 11/27 is partly due to it being a richer point on the curve with the mild inversion in 7y10y before the auction and amid a pull-back in sentiment this morning.

·         Successful yields averaged 3.946% which is within pre-auction WI range of 3.97/93% but the highest yield cut with a slight tail at 3.988%. The lowest successful yield stopped at 3.890%.

·         Gross MGS/GII issuance totaled MYR105b YTD. Final auction for the year will be a new issue of 15.5y GII 6/33 which we estimate a size of MYR2.5b.

 

Bid to cover:            1.530

Highest yield:           3.988%

Average yield:         3.946%

Lowest yield:           3.890%

Cut off:                   100%

 

 

 

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