KHAZANAH Nasional Bhd, the government's investment arm, yesterday sold RM1bil of five-year bonds at an average yield of 2.996%, Bank Negara said.
Bids were received for RM1.97bil worth of the government-guaranteed paper. The highest yield was 3.010% and the lowest 2.970%.
In March, Khazanah sold another RM1bil of five-year bonds at an average yield of 3.70%.
The average yield of the new issue surprised some fund managers, who had expected it to match that of the five-year benchmark Malaysian government bond of 3.02%.
This just shows that the market is flushed with liquidity, said Scott Lim, fund manager with CMS Dresdner Asset Management, which manages about RM650mil of funds. Reuters
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