Foreign bond outflows continue
Published on: Thursday, July 19, 2018
Kuala Lumpur: Foreign bond holdings continued an expected downtrend in June, resulting in a RM6.7 billion net outflow, albeit, markedly lower than the RM12.9 billion of the preceding month.In a statement, RAM Rating Services Bhd said foreign holdings stood at RM185.8 billion as at end-June, a 3.5 per cent month-on-month decline, due to tightening global liquidity and heightened trade tensions, which threatened trade and growth prospects.Stay up-to-date by following Daily Express’s Telegram channel.
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On the local front, it said tendered government bonds attracted better take-up rates, as evidenced by solid bid-to-cover ratios amid strong support from local investors, with the supply of Malaysian government securities (MGS) and Government Investment Issue (GII) coming up to a robust RM62.7 billion in the first half of this year.ADVERTISEMENT RAM maintained its projection of between RM100 billion – RM110 billion of gross issuance for 2018, supported by the government's commitment to maintaining a budget deficit of 2.8 per cent of gross domestic product for the year. – Bernama