Foreign bond buying retreated in February

Published on 21 Feb 2023.

Share Tweet Email

Foreign investors remained net buyers of MGS and GII for the third consecutive month in January (RM2.7 bil). The strong and sustained foreign buying came amid a softer US Federal Reserve (Fed) messaging on further rate hikes. The overall fund inflow into ringgit bonds (RM498.3 mil) was however moderated by outflows in shorter-term MTB and MITB.

The healthy investor sentiment seems to have reversed course in February. Strong US economic data continue to fuel the Fed’s defensive mode, pushing back investors’ bets that the Fed will stop hiking rates in the near term. The bond selloff caused the 10-year UST yield to surge to 3.82% as of 17 February after touching 3.52% at end-January. The benchmark 10-year MGS yield tracked this development with a quick climb back to 3.93% as of 17 February, after having shed 23.9 bps m-o-m to 3.83% as at end-January. With the Fed holding on to its hawkish stance, the next weeks may see bond yields staying elevated as foreign investors remain on the sidelines, although local investor appetite should still be strong.


Analytical contact
Woon Khai Jhek, CFA
(603) 3385 2512
                     Media contact
Tho Li Ming
(603) 3385 2511


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 accepts 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 2023 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 - February 2023 21-Feb-2023 Bond Market Monthly View PDF