THERE is still some cheer amidst the high inflation rate (4.6% in April) and oil prices (hovering around US$70 per barrel) as the country's first quarter gross domestic product (GDP) grew by 5.3%.
Bank Negara’s decision to maintain the overnight policy rate (OPR) at 3.5%, coupled with the falling equity market, also brought some bargain hunting for short- to medium-term bonds. This was in contrast to the weeks prior to the OPR meeting, where expectations of higher interest rates, both domestically and internationally, triggered a sell-off in the bond market.