THE bond market is in for a rough patch, with analysts taking a cautious stance on the outlook of the debt market while a rating agency is revising its bond issuance this year amid the external and domestic developments affecting sentiment in the capital market.
Yields are expected to further creep up with the uncertainty in the US interest rate hike, which has prompted recent foreign capital outflows. A sell-off in the European government bonds coupled with the debt crisis in Greece could further dampen the debt market worldwide this year.
On the domestic front, industry observers and analysts concur that the growing concern of the 1Malaysia Development Bhd (1MDB) RM42bil debt issue, the Government’s initiative in managing the country’s fiscal deficit, the weak ringgit and a slower economic growth as well as the credit rating agencies’ assessment of Malaysia’s sovereign rating will put pressure on yields. Data compiled by Bloomberg showed Malaysia’s Government bonds fell this week, with the 10-year yield rising six basis points (bps) to 4.13%.
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Yields are expected to further creep up with the uncertainty in the US interest rate hike, which has prompted recent foreign capital outflows. A sell-off in the European government bonds coupled with the debt crisis in Greece could further dampen the debt market worldwide this year.
On the domestic front, industry observers and analysts concur that the growing concern of the 1Malaysia Development Bhd (1MDB) RM42bil debt issue, the Government’s initiative in managing the country’s fiscal deficit, the weak ringgit and a slower economic growth as well as the credit rating agencies’ assessment of Malaysia’s sovereign rating will put pressure on yields. Data compiled by Bloomberg showed Malaysia’s Government bonds fell this week, with the 10-year yield rising six basis points (bps) to 4.13%.
Click Here To Register For Free Trial Services OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance Feel Free To Mail Us at : info@epicresearch.my
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