PETALING JAYA: Foreign investors sold RM12.3bil of Malaysian bonds accelerated in March - is the highest since May 2018 - amid mounting recession fears triggered by the Covid-19 pandemic.
RAM Rating Services Bhd said the selling in March overshadowed the RM8.1bil outflow in February.
“The equity market experienced a similar sell-off, as RM5.5 bil flowed out - the biggest since May
2018. Even as central banks continued slashing rates and easing monetary policies, flight to safe-haven assets prevailed; domestic bond yields spiked up across the board in March, ” the rating agency said in a report yesterday.
It noted that despite Bank Negara’s 25 basis point (bps) cut for the overnight policy rate (OPR) on March 3, the benchmark 10-year MGS yield jumped 56.9 bps to 3.41% at month-end, which is the biggest increase since November 2016.