The latest 20-year Government Investment Issue (GII) auction achieved a solid bid-to-cover ratio of 1.922x, reflecting strong investor interest. The auction size was set at RM3 billion, with an additional RM2 billion allocated to private placements. Total bids amounted to approximately RM5.8 billion, aligning with previous levels seen in the recent 30-year Malaysian Government Securities (MGS) reopening but falling short of the year-to-date average of RM8.7 billion for 20-30 year MGS and GII.
Despite a post-NFP rally in US Treasuries, this momentum has not translated into gains for Ringgit bonds, which have seen little movement in the local market. This morning, the market remained subdued, and there was some unwinding in the foreign exchange market, with the USDRM spot rising by over 200 pips to above 4.35.
In the when-issued (WI) market, price discovery was somewhat subdued,…
