Tepid demand. The reopening of MGS 7/26 today garnered a soft bid/cover of 1.51x on a MYR3b auction size and despite a smaller-than expected total issuance size of MYR3.5b after including MYR0.5b private placement. MGS had recovered majority of the losses from the recent selloff prior to the auction and the 7y MGS likely turned less attractive to investors waiting for better entry levels.

Successful yields averaged 3.757% and cut off at a high of 3.777% which tailed the pre-auction WI range of about 3.75/72%. The lowest yield touched 3.735%.

Next up on the auction calendar is a new issue of 30.5y GII 11/49 at a size of MYR3.5b, we estimate.

Bid to cover: 1.510x

Highest yield: 3.777%

Average yield: 3.757%

Lowest yield: 3.735%

Cut off: 75

Source: Maybank Research - 25 Apr 2020