Malaysia 3Q2023 GDP growth improved to 3.3% y/y, beating median forecast of 3.2% (forecast range: 1.7% - 3.5%) provided by 14 economists surveyed by Bloomberg. In the final scheduled MPC meeting for 2023, BNM kept the benchmark OPR unchanged at 3.00% as expected.
Global bonds rallied extensively in the month of November 2023, rebounding firmer after extensive weakening recorded in the period June to October.
Ringgit government bonds rallied with yields down 15-20 bps m/m, while swap rates fell by a larger margin where 3Y up to 10Y IRS rates fell 20-30 bps m/m. Ringgit private debt securities (PDS) yields fell alongside the decline in MGS yields.
Throughout November 2023, dollar demand was subdued, and risk-on mode improved. The DXY index fell while other major currencies appreciated.
ESG Issuance - Total ESG corporate bonds issued in January-November 2023 comes up to MYR20.6 billion from revised MYR19.1 billion the month before.
MGS/GII Issuance – The month of November saw gross GII issuance at MYR15.0 billion. No MGS was issued during the month.
Foreign Holdings – October 2023 data showed that the total foreign holdings in MGS fell by 0.8% m/m to while foreign holdings in GII papers fell 0.4% m/m.
Secondary Volume – The improved sentiment in the domestic bond market was aided by higher trading volume.
Interest is likely to fall as we head towards the year-end and the holiday break. Meanwhile, we noted that profit taking activity has taken some hold in the PDS space in the past couple of weeks.
Source: AmInvest Research - 6 Dec 2023
Created by AmInvest | Aug 30, 2024
Created by AmInvest | Aug 30, 2024
Created by AmInvest | Aug 30, 2024
Created by AmInvest | Aug 30, 2024