Foreign holdings of Malaysian govt bonds may be affected

Nor Zahidi Alias said the government should not pull the brakes on development expenditure.

KUALA LUMPUR: Foreign holdings of Malaysian government bonds could take a hit, reversing the June and July net inflows, as the country’s fate of its inclusion in the World Government Bond Index (WGBI) may be known this month.

Bond analysts and market watchers said this could be a crucial month for Malaysian bonds with more capital outflows anticipated from the debt market as the decision by FTSE Russell to retain Malaysia in the index may be known as early as this month.