The latest auction for a 15-year Malaysian Government Securities (MGS) new issue concluded with a solid bid-to-cover (BTC) ratio of 1.94x, yet the overall market sentiment remains “sluggish” for long-duration demand, according to a Maybank IBG report.
While the 1.94x BTC level suggested “good demand,” the issue fell short of the 2.5x threshold analysts believe is needed to be considered a strong showing, especially for a new stock designed for duration extension and amid typical start-of-year inventory rebuilding. The result was interpreted as demand without strong conviction.
Auction results printed close to the when-issued (WI) pricing, with the average successful yield settling at 3.766%. The cut-off yield was contained at 3.775%, resulting in a moderate tail of 0.9 basis points.
Key Auction Metrics:
- Bid to Cover: 1.944x
- Average…
