Foreign inflows into bonds continue

Published on 21 May 2021.

Share Tweet Email

Net foreign purchases of Malaysian bonds continued in April 2021, accelerating to RM6.4 bil from RM5.9 bil in March. This extends the current streak of foreign buying to 12 months for a total of RM60.2 bil. More than 90% of this total purchase went to government bonds (i.e. MGS and GII), mainly underpinned by ‘sticky’ investors (i.e. central banks, governments, pension funds and insurers).

Amid steady foreign appetite and abating selling pressure, domestic bond yields tumbled in April. The benchmark 10-year MGS yield fell 10.8 bps to 3.14%, the first m-o-m decline in three months. The reprieve from the global sell-off also halted the rise in US Treasury (UST) yields last month; the 10-year UST yield ebbed 9 bps m-o-m (March: +30 bps). Regional markets also followed suit, with 10-year government bond yields in Singapore, Thailand and Indonesia declining 15.0, 13.4 and 23.9 bps respectively in the same period.


Analytical contact
Woon Khai Jhek, CFA
(603) 3385 2512
                     Media contact
Padthma Subbiah
(603) 3385 2577


About RAM Rating Services Berhad (RAM Ratings)
Established in 1990, RAM Ratings is a leading credit rating agency registered under the Securities Commission’s Guidelines on Registration of Credit Rating Agencies, 2011. In addition to the provision of credit ratings for corporate bonds and sukuk and their issuers, RAM Ratings also provides research and publications on Islamic finance, fixed income and macro-economic and industry analysis as well as data analytics relating to credit risk, counterparty assessments and other related domains. 

ALL INFORMATION IS PROVIDED “AS IS” WITHOUT WARRANTY OF ANY KIND. Although every reasonable care has been taken to ensure the accuracy, completeness and objectivity of the information contained in this Media Release, RAM Ratings makes no representation or warranty, whether express or implied, as to its accuracy, completeness and objectivity and accept no responsibility or liability relating to any losses or damages howsoever suffered by any person arising from any reliance on the views expressed or information in this Media Release. RAM Ratings assumes no obligation to update any information or statement contained herein, save for any information required to be disclosed by law.

Published by RAM Rating Services Berhad
© Copyright 2021 by RAM Rating Services Berhad
All rights reserved. This material may not be published, reproduced, broadcast, rewritten or redistributed without prior permission.

Publication Date Published Category
Bond Market Monthly - May 2021 21-May-2021 Bond Market Monthly View PDF