M’sian bond yield under pressure due to weaker ringgit and oil price

Meor Amri (left) says reduction in foreign holdings will put pressure on MGS yields. Nor Zahidi (rights) says:

PETALING JAYA: Although most analysts are not revising their bond projections target for next year, many agree that bonds, especially the Malaysian Government Securities (MGS), will come under intense pressure in terms of yields with lower crude prices coupled with the weaker ringgit.

The yield on 10-year MGS had risen to its highest level in 10 months on concern that the weakening ringgit will spur a sell-off by overseas funds.