Global bonds ended mixed in October. USTs, for example, remained under pressure amid rising expectation of a rate hike. In the UK, on the other hand, gilts recouped most of their previous month’s losses following the mini budget’s U-turn and the appointment of a new prime minister.

Trading was quiet in October and there was only lukewarm demand in all three bond auctions. Local govvies ended the month on a mixed note with yields ticking higher on the short end but compressing lower at the long end.

Notwithstanding the selloff in October, the monthly gross issuance was the highest YTD. Credit spreads widened as a result.

Foreign investors, net sellers for the second consecutive month, trimmed their holdings to RM248.7 billion (September: RM254.9 billion) or 13.3% (September: 13.7%) of the total outstanding. Net foreign outflows accelerated to RM6.3 billion, compared with RM439.0 million in September.