KUALA LUMPUR (April 22): The Malaysian bond market registered its first foreign net outflow since November 2021, led by the sale of RM4.1 billion Malaysian Government Securities (MGS) and Government Investment Issues (GII) in March, according to RAM Rating Services Bhd (RAM Ratings). In a statement Friday (April 22), RAM Ratings analyst Woon Khai Jhek wrote that despite March’s overall net outflow of RM4 billion having more than offset the net inflow of RM3.1 billion in February, the cumulative year-to-date foreign fund flow in the Malaysian bond market had remained positive at RM2.6 billion. “The sharp outflow came amid a broad selloff in global bond markets last month, triggered by more aggressive monetary policy tightening signalled by the US Federal Reserve (Fed),” Woon wrote. “As a result, bond yields trended sharply upwards, with 10-year UST (US Treasury) and MGS yields respectively jumping 49 bps and 19.6 bps month-on-month to 2.32% and 3.84% as of end-March. The pressure persisted in April, with these yields climbing further to 2.83% and 4.02%, respectively, as of April 14,” said Woon.

Source: The Edge Markets April 22, 2022 19:55 UTC