MONTHLY BOND MARKET AND RATING SNAPSHOT - APRIL 2023 - FULL REPORT |
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| Report ID | 60538900469453 | Popularity | 615 views 23 downloads | |||||
| Report Date | Jun 2023 | Product | ||||||
| Research Type | 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 traded mixed in April. The UST yields largely declined on rising anticipation that the Fed’s rate hike cycle may end soon as inflation continued to moderate. Meanwhile in Europe, the longer-tenure 30-year bund yield rose as the market expected higher interest rate for longer to contain the elevated inflationary pressure. Malaysian Government Bond Market Local govvies extended rallies in April, with MGS yields declining across the curve. This was partly driven by the downward trend in UST yields as well as the market’s expectation of BNM holding the OPR at 2.75% ahead of its MPC meeting in May. Nonetheless, BNM made a surprise 25-bp OPR hike to 3.00% in May, owing to the strength of the Malaysian economy. Malaysian Corporate Bond Market In April, corporate bond gross issuance eased to RM7.9 billion in April (Mar: RM10.0 billion). Decline in issuances were registered in the rated corporate bonds (Apr: RM3.4 billion; Mar: RM6.9 billion) as well as Cagamas (Apr: RM1.1 billion; Mar: RM1.7 billion). Foreign Holdings of Local Bonds April marked the fourth consecutive month of net foreign inflows, notwithstanding the scale of net inflows narrowing to RM1.5 billion (Mar: RM6.6 billion). This was led by RM1.4 billion of net foreign flows into local govvies, followed by RM90.4 million of net inflows into ringgit corporate bonds. Overall, foreign holdings of local bonds remained stable at 13.5% of the total outstanding in April. |
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