MONTHLY BOND MARKET AND RATING SNAPSHOT - FEBRUARY 2023 - FULL REPORT |
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| Report ID | 60538900469416 | Popularity | 688 views 24 downloads | |||||
| Report Date | Apr 2023 | Product | ||||||
| Company / Issuer | Fixed Income Bond Market Update | Sector | Bond Market Update - Bond Market Update | |||||
| Price (RM) |
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| Rationale |
Summary Global Bond Markets Global government bonds mostly came under selling pressure in February on the growing possibility of “higher for longer” interest rate policy. This is not surprising given that inflation on both sides of the Atlantic continue to hover more than two times above major central banks’ 2% target. Meanwhile in China, bonds traded rangebound as investors’ focus turned to the country’s annual National People’s Congress held on March 5–13. Malaysian Government Bond Market Local govvies succumbed to selling pressure in February amid surging global bond yields. The weak ringgit did not help. MGS yields climbed across all maturities, though not as much as UST yields given growing market expectation that BNM will keep its OPR unchanged at 2.75% at its March 8-9 MPC meeting. Malaysian Corporate Bond Market Corporate bond issuance activity was relatively quiet in February with issuances totalling RM5.5 billion (Jan: RM4.9 billion). While the unrated segment saw issuances fall by a total of RM1.1 billion m-o-m, its rated counterpart saw an increase of RM1.6 billion. Foreign Holdings of Local Bonds While local govvies saw net foreign inflows surge to RM4.7 billion (Jan: RM0.5 billion), corporate bonds saw net foreign outflows trickle down to RM0.4 billion (Jan: RM9.3 billion). There was thus, given the overall net foreign inflow totalling RM4.3 billion, solid support for new bond issuances in the local bond market. |
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