PETALING JAYA: Fund managers remain bullish on the local bond market despite the possibility of further hikes in Malaysian bond yields resulting in higher borrowing costs from the US Federal Reserve’s (Fed) move to cut monthly bond purchases coupled with inflationary pressure in the domestic market.
Areca Capital Sdn Bhd chief investment officer of fixed income Edward Iskandar Toh told StarBiz that although the move to cut quantitative easing (QE) and inflation could exert upward pressure on yield curves, bond portfolio managers remain optimistic, as long-term demand for bonds, which provide a source of stable income, would continue to grow.