Malaysia bonds see light at end of index decision tunnel

The FTSE Russell decision is due Thursday, and 10-year notes could retrace some of their recent losses if Malaysia retains its place in the index.

SINGAPORE: Malaysia’s 10-year government bonds have room to rally if liquidity-enhancing efforts from the country's central bank mean the securities stay in a key global bond index.

FTSE Russell put Malaysia’s bonds on watch in April for potential exclusion from its World Government Bond Index, citing concerns about liquidity for the ringgit and the local bond market.