M’sia bond yield down to lowest since 2013 on interest rate cut

Economic strategy: A trader looks at chickens for sale at a meat market in Kuala Lumpur. Bank Negara reduced the base for the benchmark rate to 2.75 on Wednesday and lowered 2016’s projection for inflation to 2 to 3, from as much as 3.5. — Reuters

KUALA LUMPUR: Malaysian bonds rose for a second day and the three-year yield dropped to its lowest level since 2013 after the central bank unexpectedly cut interest rates on Wednesday.

Bank Negara reduced the overnight rate to 3%, the first policy shift since it tightened in 2014. Only Goldman Sachs Group Inc forecast the move among economists in a Bloomberg survey.