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Slower foreign inflow into Malaysian bonds in May

Published on 15 Jun 2021.

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Foreign investors remained net buyers of Malaysian bonds, albeit at a tapered pace, for the 13th consecutive month in May 2021. Their overall holdings rose by RM1.9 bil to RM247.9 bil (April: +RM6.4 bil), the weakest foreign inflow since September 2020. 

“May’s smaller foreign inflow tracks the broader regional trend and may also be due to heightened risk aversion amid the resurgence in COVID-19 infections and the subsequent nationwide lockdown,” explains RAM’s economist, Nur Nadia Mazlan. 

Foreign fund flows into the South Korean government bonds slowed from USD4.2 bil to USD2.8 bil m-o-m while Indonesia charted a USD0.5 bil outflow in May (April: +USD0.9 bil). Amid weaker investor sentiments, long-end domestic bond yields faced renewed upward pressure with the benchmark 10-year MGS yield rising 11.3 bps m-o-m to 3.25% in May 2021 (April 2021: -10.8 bps).

 
Analytical contact
Nur Nadia Mazlan
(603) 3385 2513
nadia@ram.com.my 
                     Media contact
Padthma Subbiah
(603) 3385 2577
padthma@ram.com.my

 

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. 

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Publication Date Published Category
Bond Market Monthly - June 2021 15-Jun-2021 Bond Market Monthly View PDF

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