Bond market may come under pressure

PETALING JAYA: The bond market, which is expected to see total issuance of RM80bil to RM95bil this year, could come under pressure resulting in a yield spike in the Malaysian Government Securities (MGS) amid the imminent US Federal Reserve rate hike and inflationary pressure, according to analysts.

CIMB Group’s group head of treasury and markets Chu Kok Wei said he expected government securities yields to experience slight upward pressure from the relatively softer sentiment, given the high foreign investor holdings in MGS, at about 44% as at end-2014, he told StarBiz in an e-mail.